Fiduciary Liability Insurance
Why you need it:
Prudent Person Rule
ERISA fiduciary law that requires all fiduciaries to conduct the business of the plan with prudence and care.
Any fiduciary violating this law is liable to the plan and its participants for all losses.
Under provisions of the Employee Retirement Income Security Act of 1974 (ERISA), individuals who administer retirement, group health, savings or other employee benefit plans must maintain a fidelity bond, and may be responsible for losses that arise from any breaches of their fiduciary responsibilities or duties.
The complex laws and regulations have spawned a growing number of ERISA related lawsuits.
According to the Wall Street Journal, ERISA lawsuits grew by 35% to 10,536 from 1989 to 1993 and it has only gotten worse since then.
If you are an owner or officer who makes decisions about your company's 401(k) plan or other qualified employee benefit plan(s), odds are, your personal assets are at risk!