Fiduciary liability insurance protects businesses’ and employers’ assets against fiduciary-related claims of mismanagement of a company’s employee benefit plans including retirement, health, life, profit sharing, disability, and leave. Basi Insurance Services encourages businesses to consider this coverage for these reasons:

  • Legal cost reimbursement. If a claim is made against the policyholder of this insurance, it covers the legal expenses of defending against the claim.
  • Financial protection. A policyholder would be covered in the event of financial losses incurred from a fiduciary-related claim due to errors, omissions or breach of fiduciary duty.
  • Coverage is often not included in other liability policies. If your business carries other liability policies to protect your company against legal claims, coverage for fiduciary liability is likely not included. D&O policies specifically exclude fiduciary liability, and employee benefits liability is limited to covering admin errors.*

*Full text excerpted from The Hartford Business Owner’s Playbook