LarkspurRixtrema
Expert
- 31
There is no immunity against Fiduciary liability and many directors & officers do not realize they are fiduciaries. To avoid personal liability and a loss of plan assets ERISA sets forth fiduciary liability insurance policies. Fiduciary Liability Insurance pays the legal liability arising from claims for alleged failure to prudently act within the meaning of the Pension Reform Act of 1974 and protects the personal assets of a plan fiduciary from allegations of breach of fiduciary duties.
ERISA explicitly allows for the purchase of fiduciary liability insurance and failure to purchase fiduciary insurance could potentially be a breach of fiduciary duty if a claim arises and no insurance is in place that was readily available.
A detailed expert overview of the use of fiduciary insurance in protecting fiduciaries from liability when governing or providing services for employee benefit plans subject to ERISA, has been recently published by CKR Law. See more here: https://www.rixtrema.com/blog/erisa-fiduciary-insurance-and-the-importance-of-protecting-fiduciaries-from-liability/
ERISA explicitly allows for the purchase of fiduciary liability insurance and failure to purchase fiduciary insurance could potentially be a breach of fiduciary duty if a claim arises and no insurance is in place that was readily available.
A detailed expert overview of the use of fiduciary insurance in protecting fiduciaries from liability when governing or providing services for employee benefit plans subject to ERISA, has been recently published by CKR Law. See more here: https://www.rixtrema.com/blog/erisa-fiduciary-insurance-and-the-importance-of-protecting-fiduciaries-from-liability/
