Independent Insurance Agent and Risk Manager.
Call: (610) 867-6869
Licensed in:  PA  NJ  NY  MD  DE  NC  TN  VA  WV731 W. Broad St., Bethlehem, PA   |   114 N. Main St., Doylestown, PA

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Fiduciary Liability Insurance

Fiduciary Liability Insurance provides coverage for the following:

  • Assets of the plans offered by the insured
  • Assets of the named insured
  • Personal assets of fiduciaries of the insured’s firm

[Fiduciaries mean any of the directors, officers or trustees, or any past, present or future employees of the organization who are fiduciaries as defined in ERISA (Employment Retirement Income Security Act) with respect to any plan.]

A Fiduciary is one who:

  • Exercises any discretionary authority or discretionary control in managing the plan or exercises any authority or control in managing or disposing of its assets
  • Renders investment advice for a fee or other compensation, with respect to any monies or other property belonging to the plan

Plans subject to ERISA include:
Pension Plans (not an all-inclusive list)
Profit Sharing
Employee Stock Ownership Plan
401K 

Plans not subject to ERISA include:
Workers Compensation 
Unemployment Compensation 
Disability Insurance 
 
Welfare Plans (not an all-inclusive list)
Life Insurance
Hospital, Medical, Dental, Accident Insurance
Disability Income (not disability insurance)

Types of Fiduciary Claims may include:

  • Plan Mergers/Terminations – when plans are terminated as a result of company mergers and in the process possible reduction in pension benefits may occur
  • Negligence – If a pension fund is unable to pay promised benefits because it has been seriously under funded for a long time
  • Imprudent Investment – When a high percentage of the pension fund’s assets are invested in a single company’s common stock, the plan may then suffer a severe loss when the stock is rendered worthless if that company files for bankruptcy.

FIDUCIARY LIABILITY CLAIM SCENARIOS (click to read)

 
NOTE: Confusion often arises between the need for fiduciary liability and employee benefits liablity.
Fiduciary Liability covers claims alleging breach of duties as specified by ERISA (e.g., failure to invest plan assets prudently) 
Employee Benefits Liability covers claims involving administrative errors pertaining to pension and benefits plans (e.g., failing to
name an intended beneficiary on a life insurance policy) 

Have questions?  Please call us at 610-867-6869 or click here to submit the online form and we will be glad to assist you.

 

 

Above material reprinted with permission from Gateway Specialty Insurance.


 

Thank you so much for your time. You are so great at what you do and I can’t tell you how much I appreciate it when people take pride in their work and do it well. Less money and more coverage… doesn’t get much better than that! 
  -- Jana Morris, Executive Director, Recovery Revolution, Bangor, Pa.
 

Ron Martin- not just my insurance guy but now a friend! He is sincere and truly cares about you and the success of my business. Checks in periodically just to see how we all are doing. Insurance buying was never so easy. Thanks, Ron.
-- J.& D. Morgan, Monkey's Uncle, Doylestown, Pa

 

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