Plan sponsors have a lot of responsibility as fiduciaries when managing an employee benefits plan. They have to make sure that the plan assets are invested properly, employees are given adequate information about benefits, employees are informed of eligibility for medical benefits, and much more.
It only sounds natural to hire an outside advisor to manage these fiduciary responsibilities. After all, if they specialize in this area, they would know more than you on how to manage this plan. But hiring an outside advisor does not absolve plan sponsors of fiduciary liability.
You as the plan sponsor can still be held personally liable for outside advisor fiduciary breach. You still have to monitor their fiduciary activities and make sure they are managing the plan properly and fulfilling their duties they were hired to perform as necessary. Click here to learn more.
How can you as the fiduciary protect yourself from such a breach? 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 which includes cyber liability insurance at no extra cost. 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 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.
If you would like to learn more about purchasing an ERISA fidelity bond, or an ERISA fidelity bond package including fiduciary liability insurance, call 877.650.9661 or email ERISADept@colonialsurety.com. Learn more about becoming a Pension Professional Partner here.