If you personally handle assets, administer benefits plans, sign checks, or send members of your organization to other firms that handle a 401(k) plan, then you are subject to claims alleging a breach of fiduciary care. Fiduciary liability insurance may cover the losses associated with such claims and offer defense coverage for the fiduciaries and the organization itself.
Oftentimes, business owners think they are covered for these types of events because they have employee benefits liability insurance in their commercial package policy. While employee benefits liability insurance can cover administrative errors in the handling of funds and retirement packages, it does not protect against errors resulting in a breach of the fiduciary responsibility by individuals in your organization. For that, you need fiduciary liability insurance. Talk to one of our specialists about the difference between these policies and if you have a need for this important coverage.
For more information or answers to your insurance questions, contact us at Allan Block Insurance Agency, https://www.allanblockinsurance.com, located in Tarrytown, NY in the heart of Westchester County, a key business district near New York City. We write auto, home, renters, condo, co-op, personal, business, life and group insurance for clients locally and in NYC, CT, NJ, PA, MA and many other states. The Professional Agency with the Personal Touch.