Fiduciary Liability

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Fiduciary Liability Insurance Florida

The Employee Retirement Income Security Act of 1974 (ERISA) established a new wave of liability for fiduciaries of employee benefit plans. Since it was enacted, various amendments to ERISA and other laws concerning fiduciaries have created a complex environment in which to administer benefit plans. Fiduciary policies were developed because ERISA is excluded under Directors and Officers policies. Under ERISA, fiduciaries are personally liable for losses to benefit plans incurred as a result of their alleged breach of duties.

Fiduciaries found to have breached their duty are personally liable for any plan losses resulting from the breach and for any profits that were attained through the misuse of plan assets. Fiduciaries may also be liable for penalties and attorney fees and costs incurred by the plaintiff. A lawsuit to establish the liability of a fiduciary may be brought by the Secretary of Labor, any plan participant or beneficiary, or by another plan fiduciary. The large majority of fiduciary claims are brought by past or present employees or their families.

The most frequently alleged claims against fiduciaries are:

  • Denial or change of benefits
  • Administrative error
  • Incorrect benefit calculation
  • Improper advice or counsel
  • Misleading representation
  • Wrongful termination of plan
  • Civil rights denial or discrimination
  • Failure to adequately fund a benefit program
  • Conflict of interest
  • Imprudent investment
  • Cash balance plan conversions
  • Employer stock investments

Fill out and submit the contact form on this page, or call Oros Risk Solutions today at 1-866-596-3859 to arrange to speak with one of our knowledgeable specialists about Fiduciary Liability Coverage.