Fiduciary Liability

The sponsorship of any type of retirement or employee savings program generates fiduciary responsibilities for any and all persons involved with the creation, maintenance and administration of such programs. It is noted that those persons who might be considered ?fiduciaries? of the plan can be pursued individually by claimants. As such, fiduciaries personal assets may be at risk. Further, the Employee Retirement Income Security Act prohibits fiduciaries from avoiding possible legal pursuit via corporate protection.

The adoption of insurance coverage in this area is viewed as a necessary insurance coverage when such an exposure exists. The maintenance of such coverage not only protects the entity and its fiduciaries against legal action, but also serves to afford coverage for negligent acts, errors or omissions associated with the administration of all employee benefit plans.