In every job, there is a certain risk of causing potential harm to either your client or yourself. In the world of financial trustees, the cause of harm could come from a wrong signature, procrastination or even adding numbers incorrectly. Because of the weight of the position, people’s lives could change dramatically if every duty is not carried out carefully and without error. Take a look at some of the fiduciary liability insurance claim examples out there and it becomes very clear that the appropriate insurance protection is the best defense.
One Wrong Move Could Change Everything
There are many reasons why a trustee may make a misstep when dealing with the retirement, pension or investment funds of those represented:
- Not rechecking numbers or considering all data when compiling information
- No sense of urgency when calculating numbers
- Not following proper protocol when dealing with forms and signatures
- Not advising correctly when investing into companies
All of these are actual fiduciary liability insurance claim examples, which together totaled over $6,000,000. People make mistakes, whether through negligence or misinformation. Regardless of the reason, having the best protective policy in place when such an error occurs will protect everyone involved.
When considering the right insurance company for supplying your policy needs, look for one that will represent you with the most accommodating results for your business. Check out fiduciary liability insurance claim examples and you will understand why that is so important!
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The goal of fiduciary liability insurance is protecting business and employer assets against claims of mismanagement of the company’s employee benefit plans. Fiduciary liability insurance claim examples have exploded in recent years. This has resulted in the need for tailor-made policies that fit the industry, size and type of benefit plan.
Employee benefit plans are not just retirement plans. They can be savings, health/welfare plans or profit-sharing as well. New fiduciary rules create increased liability for individuals and organizations at all levels. Some examples of risk are listed below:
- Administrative Errors. An employee wishes to participate in a 401K plan. The necessary forms are completed and submitted. If the contribution percentage is miscommunicated, and financial loss occurs, the plan trustee can be held liable.
- ESOP violations. A CEO, COO or another company fiduciary allegedly sells shares for a severely inflated price per share as the result of a fraudulent appraisal. The Department of Labor can launch an investigation and bring a suit against them.
- Failure to Disclose. An organization changes medical insurance without notice that the coverage has changed or been reduced. Employees may have unpaid medical bills as a result. A claim can be brought against the company and plan trustee.
Fiduciary liability claim examples range from failure to disclose or enroll, to tax violations and administrative errors. Flexible, intelligent coverage solutions can be adjusted to meet company needs to reduce risk.
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