Fiduciary Liability Insurance

Fiduciary Liability Insurance now includes 50k of Cyber Liability Insurance.

Where the ERISA fidelity bond is set in place to protect the participants of the plan, it does not protect you as the fiduciary.

If you already have an ERISA bond, click here to simply add Fiduciary Liability Insurance, and you will still obtain the included 50k of Cyber Liability Insurance.

Did you know the Department of Labor states that not having cyber liability insurance to protect your plan is a fiduciary breach?  “Responsible plan fiduciaries have an obligation to ensure proper mitigation of cybersecurity risks”.*DOL

Watch our quick video to learn more:

*read the published guidance from the DOL titled “Cybersecurity Program Best Practices” here. 

Under ERISA, fiduciaries may be 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 peace of mind that you are protected. Learn how to bundle your ERISA bond and fiduciary liability insurance for a discounted rate.

Already have your ERISA Bond? No problem: now you can add Fiduciary Liability and Cyber Liability to complete your coverage. Remember, our Cyber Liability Insurance covers the retirement plan, as well as the company, when purchased through one of our special protection packages for plan sponsors. Click here to purchase FLI standalone with 50k Cyber.

Fiduciary Liability Insurance is also available as part of an ERISA bond package.

We currently offer fiduciary liability insurance with our ERISA bond packages, which provide greater protection and value. One, two and three year packages include cyber liability insurance — to safeguard plan assets and your company against a loss due to cyber attack.

Frequently Asked Questions

  • An ERISA Fidelity Bond is required by the U.S. Department of Labor and protects the assets of the retirement plan from theft. Fiduciary Liability Insurance protects plan sponsors and their companies in the event of an actual or alleged breach of duty. Remember, even if you are not liable, you can be sued—and the defense costs alone can be ruinous. For example, it can cost over $600 per hour to secure a lawyer with an ERISA specialty if you are named in a lawsuit.

  • Yes! As part of our commitment to helping U.S. SMBs grow and thrive in an increasingly complex environment, Colonial’s Fiduciary Liability Insurance is now available to any company that sponsors a retirement plan and already has the ERISA bond in place. As a value add, with the purchase of Fiduciary Liability Insurance. Colonial includes Cyber Liability Insurance, with limits up to $50,000.

  • Colonial’s packages provide the greatest convenience, efficiency and value to plan sponsors. Packages include Fiduciary and Cyber Liability Insurance, as well as the ERISA Bond. By obtaining a 2 or 3 year package you are locking in your multi-year rate, you save money and time while ensuring continuous compliance and protection.

  • It covers the legal defense costs and your personal liability for actual or alleged breaches of fiduciary duties in connection with employee benefit plans. Thousands of ERISA lawsuits are filed each year, and with staggering defense costs required to defend those suits. Fiduciary liability insurance is necessary because while the ERISA bond covers the plan for any loss by theft, it does not cover fiduciaries for lawsuits brought by third parties.

  • Very! With years of successful litigation involving big businesses having set the precedent, “cookie cutter” allegations against small businesses are now on the rise. Each year, thousands of ERISA lawsuits expose fiduciaries to claims by plan participants and beneficiaries. Claims include: failing to make timely contributions, not following plan documents, failing to prudently invest based on employee expectations, paying excessive fees, and failing to respond to requests for rollovers, distributions, and investment changes and ever a Cyber breach.

  • Yes.  The reality is that under ERISA law, any individual involved in the management of an employee benefit, such as a 401k plan, can be personally liable to the participants and beneficiaries.

Get the word straight from our customers.