One of the leading causes of fiduciary liability and fiduciary breach is retirement plan fiduciaries not being well versed in plan documents, terms, and conditions. Not following the written terms of a plan document may be a breach of a plan fiduciary’s fiduciary duty under ERISA, the law that governs employer-sponsored retirement plans. Click here to learn more about fiduciary liability exposure for not following plan documents.
For example, a Conagra Brands HR executive has been charged with violating her fiduciary duty by failing to follow the terms of the company’s plan’s 401(k) plan.
Innocently missing one term of a plan document can lead to you as a plan fiduciary breaching your fiduciary duty and having your personal assets at risk.
How can you as the fiduciary protect yourself from such a breach? Fiduciary liability insurance!
While the ERISA fidelity bond is required to protect the participants of the plan, it does not, however, protect YOU and your company as the fiduciary.
Colonial Surety Company is a Treasury Listed surety company providing ERISA fidelity bonds packaged with fiduciary liability insurance and cyber liability insurance. Colonial is one of the leading providers of ERISA related products, offering bonds approved by the Dept. 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 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 and cyber liability insurance for a discounted rate.
If you would like to learn more about purchasing an ERISA fidelity bond, or an ERISA fidelity bond package including fiduciary liability insurance or cyber liability insurance, call 877.650.9661 or email ERISADept@colonialsurety.com. Learn more about becoming a Pension Professional Partner here.