Fiduciary liability claims are expensive – The average settlement is $994,0001, average defense costs are $365,0002 and 69 percent of substantive ERISA litigation is resolved in favor of the plaintiffs.
Your clients could be held personally liable – A fiduciary – any individual involved in the management of a retirement or health plan – can be at risk if they breach their duties and be personally required to make the plan whole for any losses they caused.
You can’t blame plan participants for bad decisions. Fiduciaries are responsible for providing a broad range of investment alternatives and minimizing the expenses associated with those investments. Since 2006, the plaintiff’s bar has recovered more than $170 million for excess expenses.
Your plan documents must be followed. A fiduciary can be sued for not following the plan documents and plan participants regularly sue claiming denial of benefits in violation of plan documents. More than 9,000 ERISA lawsuits are filed each year on average.
No passing the buck on to vendors. A fiduciary cannot escape responsibility by blaming a service provider. According to the Department of Labor, it is the responsibility of the fiduciary to vet and monitor any outside vendor.
Cincinnati Intermediaries is a leading provider of Fiduciary Liability coverage. Call us today and we’ll work with you to craft a program for your insured’s.
ABOUT CINCINNATI INTERMEDIARIES
Cincinnati Intermediaries is an insurance wholesale broker focused exclusively on the placement of management and professional liability insurance. They have sound expertise in Management Liability, E&O, D&O, Miscellaneous Professional, Cyber, Architects & Engineers, Financial Institutions, Lawyers and Non-Profits. Headquartered in Cincinnati, OH, they operate nationwide and are able to assist retail insurance agents with placement of coverage nationally. Cincinnati Intermediaries represents the majority of the admitted and surplus lines insurance carriers that focus on professional liability insurance in the United States.