Experts warn that ERISA lawsuits are continuing at a rapid, “cookie-cutter” pace. In particular, there has been a rise in lawsuits against smaller plans. Plan sponsors, in addition to securing fiduciary liability protection, are advised to step up efforts to mitigate the risk of ERISA litigation.
Every Day Occurrence
According to experts at Sageview Advisory Group: “Over the past 15 years, ERISA fiduciary litigation in defined contribution [DC] plans has grown from a rare event … to a seemingly everyday occurrence…” Most of the cases against plan fiduciaries follow legal precedents that have been won related to claims of excessive fees and, recently, there has been a rise of ERISA lawsuits targeting small businesses. The harsh reality is: no matter how diligently you strive to fulfill your responsibilities, there’s no guarantee that as a plan sponsor you won’t face personal exposure for breach of fiduciary duty. That’s why increasingly, plan sponsors across the country are turning to Colonial Surety for affordable fiduciary liability insurance— and peace of mind that personal assets are protected from a breach of responsibility in the administration or handling of the employee retirement plan. With an annual premium that is less than the cost of just one hour with an expert ERISA lawyer in the event of a lawsuit, Colonial can quickly help you obtain fiduciary liability insurance now:
Risk Mitigation Efforts
Plan Sponsor advises several areas for increased focus as plan sponsors work to mitigate the risk of ERISA litigation. These include:
- Governance procedures, such as committee structure, meetings, member training and record keeping.
- Communication with participants, including the sharing of clear information at regular intervals and and prompt follow up on all complaints.
- Monitoring service providers based on performance and fees as well as conducting a formal annual review and clearly documenting the process and the results.
Data security and efforts to prevent fraudulent account withdrawals are also becoming increasingly critical areas of plan sponsor responsibility. As part of stepped up risk mitigation efforts, its important for plan sponsors to review the Employment Benefits Security Administration’s comprehensive cybercrime prevention guidance:Tips for Hiring a Service Provider; Cybersecurity Program Best Practices; and, Online Security Tips.
Many experts are in fact advising small business owners not to underestimate digital security risks— the results are costly—and frequently devastating. Having a response plan is critical—and Colonial Surety can help. Our affordable Cyber Liability insurance provides a dedicated team of experts who assist at every stage of incident investigation and response in the event of a breach. Carefully vetted forensic and legal experts establish what’s been compromised, assess responsibility and notify impacted individuals. As needed, call center support, credit and identity monitoring is provided— even public relations experts. Liability protection in the event of covered lawsuits or regulatory actions due to a data breach? Of course, that’s included too.
Plan sponsors across the country are saving time and money with Colonial Surety’s specially tailored, reasonably prices and comprehensive protections packages which include:
- The ERISA bond required to protect the assets of the retirement plan from theft;
- Fiduciary Liabilitycoverage to protect you and your assets from personal liability; and,
- Cyber Liability coverage to safeguard your company and plan from covered losses and expenses in the event of a cyber breach.
Colonial makes it so easy to secure all this coverage that you can do it now, right here: Complete Plan Sponsor Package Here.
Colonial Surety Company is in business all across the USA. We are rated “A Excellent” by A.M. Best Company and U.S. Treasury listed.
Serving customers since 1930, Colonial Surety is the trusted source for the pension industry to secure legally required ERISA bonds, fiduciary liability insurance and cyber-liability insurance. We help safeguard plan sponsors, pension professionals and financial advisors – and keep their businesses compliant – with pain-free, efficient, and friendly service every time.