More and more cases related to ERISA duties are winding their way through the courts and could have a large impact on plan sponsors and how they will be able to manage their employee benefit plans.
Cases asking for clarity from the Supreme Court include ones regarding burden of proof on fiduciary breach claims, communication about investment options, and standards for passing motions to dismiss claims pretrial. What it really comes down to, according to attorneys working on these cases, is ambiguities within ERISA that require the court to clarify without further amendments to the law.
Without amendments or rulings on these issues, with more cases going to trial, there is just more ambiguity as to what the duties of plan sponsors are and what they are allowed to do. Click here to learn more.
So how can you make sure you’re protected even with all this uncertainty? Fiduciary liability insurance!
Where the ERISA fidelity bond is set in place to protect the participants of the plan it, however, does not protect YOU as the fiduciary.
Colonial Surety Company is a Treasury Listed surety company providing ERISA fidelity bonds packaged with fiduciary liability insurance that includes a cyber liability insurance endorsement at no extra cost. Colonial is one of the leading providers of ERISA related products, offering bonds approved by the Department of Labor. We make it easy to obtain your bond instantly as well as allowing you to purchase retroactive insurance for the years the plan was not previously covered.
Under ERISA, fiduciaries may be held personally liable for a breach of their responsibilities in the administration or handling of employee benefit plans. Under ERISA 410, the plan cannot relieve you of this responsibility with indemnification language, however, it specifically permits persons with personal liability to purchase fiduciary liability insurance. Covering yourself with fiduciary liability insurance gives you a piece of mind that you are protected. Learn how to bundle your ERISA bond and fiduciary liability insurance for a discounted rate.