Fiduciary liability insurance is an important, though rarely used, coverage in your bank insurance program. Claims are infrequent. When they do happen, hang on to your hat. Fiduciary liability insurance protects the administrators of your employee benefit plan from lawsuits alleging a violation of ERISA. ERISA calls your administrators … [Read more...]
Fiduciary Liability Coverage Misunderstandings
June 22, 2019
In your bank's management liability insurance program is (should be) coverage for errors made in the administration of YOUR employee benefit plan as described in the federal law, ERISA. This coverage section is almost always called "Fiduciary Liability." The word "fiduciary" refers to your liability under ERISA, as an employer. This is not … [Read more...]
How Much Insurance Should Your Bank Buy
January 15, 2019
The eleventh edition of my recommended minimum limits of insurance for banks is available now for download. Several changes in approach this time. New limits for bankers to consider as well as a different approach to publicly traded banks. Go to www.HowMuchBankInsurance.com for your copy. Directors and Officers Insurance Lender Liability … [Read more...]
Intro to Fiduciary Liability Insurance
January 28, 2014
The fiduciary liability insurance policy is an important - though rarely used - business insurance policy. Claims are infrequent. When they do happen, hang on to your hat. Fiduciary liability insurance protects the administrators of your employee benefit plan from lawsuits alleging a violation of ERISA. ERISA calls your administrators … [Read more...]
ERISA and Personal Liability
December 5, 2012
A client asked me a few questions today about ERISA. I knew the answer but wanted to provide sources. I came across an article I had written for a Maine business publication in 2006. They gave me reprint rights. Here it is: HR Managers May Be Personally Liable For Benefit Plan Mistakes By Scott Simmonds, CPCU, ARM Mainebiz 8/7/06 Reprinted … [Read more...]
Fidelity Insurance vs Fiduciary Insurance
November 25, 2011
I was asked recently about fidelity insurance. As I mentioned in a prior post, fidelity insurance is employee theft coverage; AKA employee dishonesty insurance. Fiduciary coverage is very different. Fiduciary coverage is liability protection against allegations that you have violated the federal law governing employee benefit plans - known … [Read more...]
