What Does Fiduciary Liability Insurance Cover?

What Does Fiduciary Liability Insurance Cover?

Axis Insurance Service

Understanding your insurance is an important part of making sure you know when and how to use it. It’s also the only way to be sure you’ve actually purchased all the coverage you need. When it comes to fiduciary liability coverage, there are a lot of people who wonder exactly what is covered, because it’s one of the more obscure forms of insurance, but it is vital. As Axis Insurance Service points out, it covers a variety of issues related to the management of your company’s employee benefits. Fiduciary liability insurance claim examples include:

  • Improper avisement
  • Pension rights
  • Administrator inaction
  • Missed calculations

Coverage for Benefits Management Companies

If your business is managing benefits for client companies, fiduciary liability coverage is even more important, because you incur many of the same liabilities as an employer managing benefits in-house, and you incur them for every client you pick up. Without the right coverage, the risks of doing business quickly outpace the rewards. With the right insurance, though, your company can offer its service competitively and without worry, because in the event of a mistake, oversight, or dispute, you’ll have the tools you need to navigate the situation. Make sure you have the coverage your company needs today, and remember to update your insurance whenever your obligations change.