There is a lot of complexity in running a business and managing employees. For one thing, it’s important for a company to provide employees with a benefit plan that makes for a great work experience. Among the complexities of overseeing employee benefits, fiduciary insurance will protect the business in the event that it is held liable for mismanagement.
What Is Fiduciary Liability Coverage?
A fiduciary is an individual with power over the management and decision-making of a benefit plan document. These duties can typically be attributed to employers or other administrative officers in a company. If a claim is raised that a fiduciary is guilty of mismanagement over a benefit plan, fiduciary insurance will help cover the costs of defense and other legal matters.
Building Human Trust
While fiduciary liability issues may be relatively uncommon, there are additional benefits for implementing coverage. Clients and employees looking to work with your company will look favorably upon the business for having fiduciary coverage in place. It is an indication that the company is willing to work towards protecting the interests of its associates.
Fiduciary insurance is a key component in protecting a company and employees during mismanagement incidents. By providing benefits in the form of indemnity and defense, the financial assets of a business will be covered. A fiduciary program designed for your specific employee benefit plan will be a major boon for your company.