Fiduciary Liability Insurance can help organizations protect themselves against costly and damaging fiduciary-related errors. Depending on the policy purchased, coverage may include protection from claims alleging any breach of fiduciary duty resulting in financial loss to a plan such as mismanagement of plan assets or improper administration of the plans.
Fiduciary Liability Coverage Options
Some other types of coverage that may be included under Fiduciary Liability Insurance are defense costs for investigations by government agencies such as the IRS or Department of Labor, restitution for losses stemming from administrative mistakes, or reimbursement for pension income that was incorrectly paid. Additionally, coverage could extend to cyber liability exposures, including data privacy violations or unauthorized access to protected data.
These policies often provide worldwide coverage, meaning that they may cover claims brought against the organization outside of their local jurisdiction. This means that companies can protect themselves from potential financial loss stemming from actions taken by third-party vendors or plan administrators who are located overseas.
If an organization is found liable for losses incurred in a fiduciary capacity, Fiduciary Liability Insurance offers them protection against the costs associated with defending a claim and any potential judgments or settlements. As such, this type of insurance provides valuable peace of mind to organizations, helping them ensure that their finances remain secure even in the face of legal action. Having this coverage in place helps organizations avoid the risk of bearing the full cost of a judgment due to negligence or misconduct on their part.
Free Fiduciary Liability Consultation
Overall, Fiduciary Liability Insurance is a valuable tool for organizations looking to protect themselves against potential financial losses due to errors or mismanagement in their fiduciary duties. If you require further assistance establishing your policy or if you have questions you’d like answered, contact us via phone or the quote button – remember, consultations are always free.
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