What you thought you knew may be all wrong!
Fiduciary Liability - Where does it come from?

Employee Retirement Income Security Act (ERISA) of 1974.
Common Law.
State Statute.
Who comes under ERISA?
Fiduciaries.
"Surprised Fiduciaries."
"Parties in interest."
Employees of above
What happens when you violate ERISA?
Fines.
PERSONAL LIABILITY WHICH SURVIVES BANKRUPTCY!!!
Who are fiduciaries?
The person who administers your company's benefits.
Anyone who is involved in the rendering of:
a) Management of benefit plans and their assets.
b) Investment advice to benefit plans or their participants
Who are "Surprised Fiduciaries"?
Company officers and directors.
Member's of a plan's Investment or Administrative Committee.
Insurance Agents, Stock Brokers, and Accountants.
DID YOU KNOW?
Despite any indemnification agreement that may exist, EACH FIDUCIARY IS PERSONALLY RESPONSIBLE to the benefit plan for any loss caused by improper action, or inaction, on his/her part.
If two or more fiduciaries both contribute to a loss EACH IS LIABLE FOR THE FULL AMOUNT AND NEITHER CAN MAKE THE OTHER SHARE THE REPAYMENT.
A few fiduciary liability examples:
Fiduciary/Employer failed to carry required amount of Fidelity cover at time of loss (ERISA requires, as a minimum, Fidelity cover in the amount of 10% of the plan funds or $500,000, whichever is less).
Fiduciary/Employer failed to realize that the above bonding requirement applies separately to every plan sponsored by the employer. An employer sponsoring a pension plan, a health insurance plan, a group life plan, a sick day plan and a paid vacation plan could easily have a $2,500,000 Fidelity coverage obligation!
Imprudent choice of insurance company, mutual fund or third-party service provider.
Faulty advice or counsel!
Fiduciary purchases Fiduciary liability cover with his/her own money is subject to insurer's "RIGHT OF RECOVERY" clause against any insured who breaches their fiduciary responsibility.
Improper amendments to plan documents
Denial or change of benefits
Improper disclosure to plan participants
Administrative error, etc.
DID YOU KNOW?
Insurance for this exposure is cheap depending on asset size - - premiums usually run from $100 to $1,000 annually.

CALL FOR AN APPLICATION SO A PRECISE COVERAGE/PREMIUM QUOTATION CAN BE GIVEN!