The Liabilities Of A Fiduciary
The Liabilities Of A Fiduciary

If you are an owner, director or officer of a private or public company you have a fiduciary liability exposure. You may be responsible for the selection of retirement or benefit providers or plans and these decisions can create personal liability for you.
What is a fiduciary?
Under ERISA, fiduciaries can be held personally liable for losses to a benefit plan incurred as a result of their alleged errors, omissions, or breach of their fiduciary duties.
Who are fiduciaries?
Fiduciaries can be plan trustees, investment committee members, even owners of companies who contract with third party providers.
Here are examples of the most frequent kinds of claims
- Denial or change of benefits
- Incorrect benefit calculation
- Improper advice or counsel
- Misleading representation
- Failure to properly fund the plan
- Lack of investment diversity
- Conflict of interest
- Selection of advisors
How to limit your liability
- Have annual plan review
- Communicate with employees regularly
- Use professional consulting firms and review their insurance
- Have the plan audited by outside accountant
This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice. Please seek professional legal or tax counsel before making any decisions. The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.