Fiduciary Liability Coverage Solutions for Risk Management

Fiduciary liability coverage is a crucial component of risk management for organizations with employees who hold fiduciary positions. This type of coverage protects against financial losses resulting from breach of fiduciary duties.

Fiduciaries are typically responsible for managing assets on behalf of others, such as retirement plans or employee benefits. They have a duty to act in the best interest of the beneficiaries.

Fiduciary liability coverage can help mitigate the financial impact of a breach, which can be severe. For example, a single mismanaged investment could result in millions of dollars in losses.

This type of coverage can also provide protection against allegations of fiduciary misconduct, which can lead to costly lawsuits and reputational damage.

Fiduciary liability coverage is a type of insurance that protects organizations and individuals from financial losses resulting from their fiduciary responsibilities.

This coverage is specifically designed for those who manage other people's assets, such as pension funds, 401(k)s, and other employee benefit plans.

Fiduciary liability coverage can help pay for legal fees, settlements, and judgments if a fiduciary is sued for breaching their duties.

A breach of fiduciary duty can occur if a fiduciary acts in their own best interest instead of the interest of the plan participants.

For example, if a fiduciary invests plan assets in a company they have a personal interest in, they may be held liable for any losses.

Fiduciary liability coverage can help protect a fiduciary's personal assets from being seized to pay for legal judgments or settlements.

The cost of fiduciary liability coverage varies depending on the size of the plan and the level of risk involved.

Encore offers a range of benefits and features that make their fiduciary liability coverage a top choice for single-employer plan sponsors.

Their coverage limits go up to $15 million on a primary or excess basis, providing a significant safety net for plan sponsors. This can be a huge relief for those who need to mitigate potential losses.

One rare feature of their coverage is the Duty to Defend and Choice of Counsel, which gives plan sponsors more control over their defense. This can be a major advantage in complex cases.

Encore's coverage also includes $0 retention for Non-Indemnifiable Loss, which can help reduce costs for plan sponsors. This is especially important for those who are already dealing with the financial burdens of running a plan.

Here are some of the key features of Encore's fiduciary liability coverage:

Their coverage also includes a range of other benefits, such as full settlor coverage referenced under the definition of Wrongful Act, coverage for pre-claim investigation costs with no sublimit for DOL investigations (affirmatively including the IRS), and interview coverage for other regulatory investigations.

Encore's Product Highlights are truly impressive. Limits capacity is available up to $15 million on a primary or excess basis.

One of the standout features is the rare Duty to Defend and Choice of Counsel, which provides added protection for plan sponsors.

A $0 retention for Non-Indemnifiable Loss is also included, which means you won't have to worry about paying out of pocket for certain claims.

The product also offers full settlor coverage referenced under the definition of Wrongful Act, providing comprehensive protection for plan sponsors.

Here are some of the key features and benefits of Encore's product:

Employee benefits are a crucial aspect of any organization, and having the right coverage can make all the difference. Employee benefits liability coverage, also known as employee benefits errors and omissions, takes care of administrative errors and omissions within a plan, such as failing to enroll a member of the staff.

This type of coverage is typically included within a fiduciary liability policy. Fiduciary liability policies are designed to protect employee benefit plan sponsors from errors and omissions, and they often include employee benefits liability coverage as a standard feature.

Employee benefits liability coverage is not the same as imprudent investments, which are not covered under this type of policy. If you're looking for protection against administrative errors and omissions, this is the type of coverage you'll want to consider.

Fiduciary liability policies can be tailored to meet the specific needs of single-employer benefit plans, which are often complex and sophisticated. In fact, many of America's most sophisticated single-employer plans have turned to fiduciary liability policies for protection.

Multi-employer benefit plans also require specialized coverage, and fiduciary liability policies can provide the necessary protection for plan trustees. With the right coverage, plan trustees can have peace of mind knowing they're acting as prudent fiduciaries under the law of ERISA.