Fiduciary liability insurance is crucial for safeguarding individuals or entities managing employee benefit plans from claims of mismanagement or breach of fiduciary duty.

Employees are often drawn to companies offering comprehensive benefits like health insurance, stock options, and 401(k) plans. If your business in Ohio provides these benefits, it likely has a team overseeing them. However, mistakes can happen, and your company could be held liable.

Fiduciary liability insurance from Parson Insurance Agency in Canton is a crucial risk management tool that protects your business and employees from mismanagement claims and legal liabilities. This insurance covers legal costs for defending against fiduciary duty breach claims. Unlike some coverages, ERISA does not mandate fiduciary liability insurance, which makes awareness and proactive measures essential.

While various employer liability coverages exist, fiduciary liability insurance uniquely protects both the company and individuals from claims of negligence, mismanagement, or actions contrary to the best interests of plan participants.

Small businesses in Ohio providing employee benefits are subject to ERISA, which imposes the highest fiduciary duty on those managing benefit plans. ERISA holds fiduciaries liable for violating duty, meaning they must reimburse employee financial losses. Since ERISA prohibits pension or health plans from covering fiduciary legal expenses, fiduciary liability insurance becomes vital for protecting personal and business assets.

If you're a solopreneur or have a few employees without offering benefits, fiduciary liability insurance might not be necessary. However, businesses in Ohio with significant employees and benefits should consider this protection. It shields your company from the high costs of defending against fiduciary claims, which can financially cripple a growing business.

Businesses invest in fiduciary liability insurance due to the high costs of claims. Legal defense and settlement costs can be prohibitive, and mistakes in managing complex employee benefit plans are common. Even with an external vendor managing your plans, your employees with fiduciary responsibility could still be named in claims.

As fiduciary claims increase, the scope of fiduciary liability insurance has expanded. To learn more about protecting your business in Ohio, contact Parson Insurance Agency today.

It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options

If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.

Contact us today to help you with multiple options to choose from.