More than one trillion dollars is invested in today’s pension plan assets. This represents the largest single source of investment money in the United States-and it also represents an extremely large liability exposure for pension plan trustees and fiduciaries.
“Trustee and Fiduciary Liability protects individual persons from wrongdoing by the Trustee.”
The Employee Retirement Income Security Act of 1974 (ERISA) puts responsibility squarely on individual trustees and fiduciaries to safeguard assets of pension, welfare and profit-sharing plans. The days are gone when this was an easy task, even the most qualified plan trustees are challenged to keep up with developments in the investment environment.
Will every decision stand up under critical light?
Millions of employees and their families depend for their futures upon decisions made by these guardians of pension and welfare plans. Trustees and fiduciaries now find themselves increasingly subject to criticism from all directions. Beneficiaries, employers and regulatory agencies can allege, among other charges:
- Breach of duty
- Too little return or too much risk in investment of assets
- Imprudent choice of investment or advisory firms
- Not enough contributions or too much contribution
- Improper assessment of future vested liabilities
The W.E. Davis Insurance Agency can offer plans that protect trustees and fiduciaries against such allegations of wrongful acts. Employee benefits administration liability coverage is also included under the policy’s aggregate amount. This protects directors, officers and employees of the sponsor in the day-to-day administration of all employee benefit plans.
Our agency can explain the importance of policy features designed to meet your needs:
- The sponsor is included as a named insured.
- Coverage applies on a claims-made basis. A 12-month extended discovery right is available for a small additional premium.
- You can have $500,000 or more of coverage. Defense costs and other expenses are included.
- You are automatically covered for future plans up to 60 days after inception.
Ask our agency for a quotation today.