Directors & Officers
Errors and Omissions
Errors & Omissions
There has been a spike in the severity and frequency of fiduciary claims over the past several years.
Fiduciaries handle management or selection of retirement plans, health plans, life insurance and disability plans, and other employee benefits. There has been a spike in the severity and frequency of fiduciary claims over the past several years. In fact, plan fiduciaries today now surpass the medical profession as a most wanted target for litigation.
The average claim has reached beyond $800,000 – up from $700,000 just five years earlier, with defense costs during this same period having risen 471%. Plan participants file more than 90% of the claims, with unions, government agencies, and other entities making up the remainder. And nearly 50% of the claims arise out of benefits disputes.* Other issues that may give rise to legal action include administrative errors and deficiencies in the communication of participants.
The data proves how important it is to protect your insureds in their fiduciary capacity.
PLRisk Advisors can provide you with access to Fiduciary Liability insurance, which protects the insured against allegations that the fiduciary – the money or benefits handler – has breached their duty. The accusation can focus on an error or negligence in administering a plan, including but not necessarily limited to misinterpretation of plan documents, providing imprudent investment options to plan participants, misrepresenting investments, mishandling enrollment paperwork and giving bad advice or faulty instructions to participants.
Our policies can cover expenses associated with civil lawsuits, written demands for damages that haven’t proceeded to court, administrative or regulatory actions, and investigations by the government or other official agency. Policy coverage options include legal defense fees, awards to or settlements with claimants, and voluntary correction programs even when there isn’t a claim. The specific coverage you receive depends on the insurance agreement that meets your client’s needs.