As a plan sponsor, you may think one investment you have will work wonders for the plan funds you are in charge of. But what if it does not? What if it fails? Then you will be guilty of a fiduciary breach.
Plan sponsors have a duty to do their best to properly manage plan assets and funds and diversifying investments is one way they can do that. It lowers risk and greatly reduces the odds of the plan’s investments cratering. Click here to learn more.
If you have investments tied up in too few stocks, one of them failing, which happens all too often, could ruin an entire pension plan’s future.
How can you make sure you’re personally protected from a fiduciary breach in case an investment fails? Fiduciary liability insurance!
Where the ERISA fidelity bond is set in place to protect the participants of the plan it, however, does not protect YOU as the fiduciary.
Colonial Surety Company is a Treasury Listed surety company providing ERISA fidelity bonds packaged with fiduciary liability insurance that includes a cyber liability insurance endorsement at no extra cost. Colonial is one of the leading providers of ERISA related products, offering bonds approved by the Department of Labor. We make it easy to obtain your bond instantly as well as allowing you to purchase retroactive insurance for the years the plan was not previously covered.
Under ERISA, fiduciaries may be held personally liable for a breach of their responsibilities in the administration or handling of employee benefit plans. Under ERISA 410, the plan cannot relieve you of this responsibility with indemnification language, however, it specifically permits persons with personal liability to purchase fiduciary liability insurance. Covering yourself with fiduciary liability insurance gives you a piece of mind that you are protected. Learn how to bundle your ERISA bond and fiduciary liability insurance for a discounted rate.