It is hard for a fiduciary to determine what exactly would be a breach of their fiduciary duty to a retirement plan. That is where New York based law firm Cohen & Buckmann, P.C.’s 2019 “Intelligent Fiduciary Guide” comes in handy. The guide is essentially a manual for plan sponsors, investment advisers, and other fiduciaries to navigate the minefield of what a fiduciary should and should not do. Click here to learn more.
Lessons in the guide include implementing a prudent process for plan fiduciary decision making, retaining experts, and understanding targets and dates. When you purchase a guide like this to keep your basic responsibilities up to date, there are still many of obstacles to avoid in order to adequately perform your fiduciary duty and not become personally liable for any plan losses. The ERISA fidelity bond does not protect a fiduciary personally.
So how can you make sure you’re protected even with all this uncertainty? Fiduciary liability insurance!
While the ERISA fidelity bond is required to protect the participants of the plan, it does not, however, protect YOU and your company as the fiduciary.
Colonial Surety Company is a Treasury Listed surety company that provides ERISA fidelity bonds packaged with fiduciary liability insurance and cyber liability insurance. Colonial is one of the leading providers of ERISA related products, offering bonds approved by the Dept. 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 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 peace of mind that you are protected. Learn how to bundle your ERISA bond and fiduciary liability insurance and cyber liability insurance for a discounted rate.
If you would like to learn more about purchasing an ERISA fidelity bond, or an ERISA fidelity bond package including fiduciary liability insurance or cyber liability insurance, call 888-383-3313 or email ERISADept@colonialsurety.com. Learn more about becoming a Pension Professional Partner here.