C32817NY EP Portfolio (Fiduciary Liability) - NY application 2025

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No. Fiduciary liability insurance provides coverage for risk or loss resulting from negligence, mismanagement, or errors. Intentional acts like fraud or theft causing loss to a benefits plan or its assets are not covered; that is the domain of a specific crime coverage policy.
Generally, policies can range from $500 to $2,500 per year, depending on the specific needs of your company. Policies can cover as much as $20 million per year. The scope of fiduciary liability insurance has broadened over the years as claims activity has increased.
The primary responsibility of fiduciaries is to run the plan solely in the interest of participants and beneficiaries and for the exclusive purpose of providing benefits and paying plan expenses. Fiduciaries must act prudently and must diversify the plans investments in order to minimize the risk of large losses.
Fiduciary liability coverage helps protect companies from claims of mismanagement and the legal liability related to serving as a fiduciary. If your company sponsors a retirement or health plan for employees, and if you are involved in any way with the management of that plan, you are likely considered a fiduciary.
ERISA fidelity bonds protect plan participants from loss due to fraud or dishonesty, while fiduciary liability insurance protects companies from legal liability arising from plan sponsorship.
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