By offering benefits to employees, you add a fiduciary liability insurance exposure to your business.
In today’s workplace environment, offering some form of retirement benefit is as necessary as air conditioning when it comes to attracting and retaining key employees.
Savvy employees are unlikely to want to work for your organization if it does not offer some form of 401(k), pension plan, 403(b), etc (small business owner’s interested in more information on retirement plans click here for basics).
So you have a Retirement Plan, Great!
As the business owner/decision maker you’ve decided that attracting and retaining key employees is important to growth and sustainability of your business.
You’ve contacted The Murray Group’s financial specialist, who’s advised you on the retirement plan that best suits your organizations needs.
You’ve selected several investment options for the 401(k) plan for your employees choose from. Now your employees are happy because they have a retirement plan and you’re very happy because your employees are happy and love coming to work!
Unfortunately, as great a boss as you now are, you’ve just opened your business up to a HUGE New York fiduciary liability exposure that is NOT covered under your commercial general liability policy…
…you need New York Fiduciary Liability Insurance.
NY Fiduciary Liability Insurance
What/Who are Fiduciaries? (Who is at risk?)
- People who have discresion over a retirement or health plan
- People who have control over plan management & assets
- People who have responsiblity in plan’s administration
What are Fiduciary Exposures? (What can a Fiduciary be sued for?)
- Benefit Selection
- Diversification of Benefits
- Prudent Acts (Acts on behalf of the plan must be made in a timely manner)
- Act within Plan Documents (Acts on behalf of the plan must be made within the scope of plan documents)
- No “prohibited transactions” (Unlawful acts or transactions made within the plan)
My Employees Are Like Family, We Don’t Need This Expense
Have you ever heard of Bernie Madoff?
NY Fiduciary Liability Insurance claims have skyrocketed because of horrible things this man did to retirement plans and pension funds.
In many cases employers were unaware that they were even exposed to Madoff.
It doesn’t matter how close a relationship you perceive to have with your employees, if they lose three quarters of their retirement savings in one week because of an investment option you offered, they’re going to come after someone (You!). The defense costs alone can bankrupt a business.
Fiduciary liability insurance is going to be the insurance product that can potentially offer you coverage against that ensuing lawsuit.
Please do not kid yourself, every organization that offers retirement benefits is exposed to fiduciary liability.
Whether you decide to purchase the NY fiduciary liability insurance policy or not is up to you as the Business Owner/Decision Maker. However, the risk is real and in today’s litigious society you just never know when a lawsuit is coming.
With so many alternatives in business insurance coverage it’s understandable that you may feel a bit frustrated—so why don’t you enjoy living your life and leave the insurance part to us!
You business is worth insuring with comprehensive NY fiduciary liability insurance.
Contact us today at (518) 456-6688 or Click Here to email – for a complimentary coverage evaluation.
Let one of our business insurance experts get you started on the right path with more information and a free NY business insurance quote today!
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