If your company sponsors employee benefit plans — 401(k), health insurance, pension, profit sharing — you have fiduciary responsibility under ERISA (Employee Retirement Income Security Act). Fiduciary liability insurance protects the individuals who manage, administer, or make decisions about these plans from personal liability when employees allege mismanagement, improper investment choices, or administrative errors.
Any company that sponsors or administers employee benefit plans: businesses with 401(k) or retirement plans, companies offering health insurance, organizations with pension or profit-sharing plans, and HR managers or committee members who make decisions about employee benefits.
If your company offers a 401(k), pension, health plan, or any ERISA-covered benefit, yes. The individuals who administer these plans face personal liability under ERISA. A single fiduciary breach claim can result in six- or seven-figure liability for plan fiduciaries.
Fiduciary liability premiums typically range from $1,000–$5,000/year for small to mid-size businesses. Cost depends on plan assets, number of participants, and plan complexity. It's one of the more affordable management liability coverages.
Some D&O policies include limited fiduciary coverage, but most do not provide adequate protection for ERISA-related claims. A standalone fiduciary liability policy provides significantly broader and deeper coverage for employee benefit plan risks.
Get a free quote or call (321) 206-8035.