As an employer you offer employee benefit plans as a way to help attract and retain a talented staff. With this benefit offering comes a significant level of liability exposure for you and your company created from the management of these plans.
Sinclair Risk & Financial Management can provide you with a program designed to protect you in the event there are claims arising out of improper investments, insufficient funding, or breach of fiduciary duties in the plan’s management. Our Fiduciary Insurance policy will protect you and the personal assets you have at risk as the plan’s fiduciary in the event of a claim.
Why is this coverage important? Recent studies show that there has been an increase in claims severity and frequency over the past several years. Today, plan fiduciaries now surpass the medical profession as a target for litigation. The average claim has surpassed $800,000 – up from $700,000 just five years earlier. Defense costs during this same period rose 471%. Plan participants file more than 90% of the claims, with unions, government agencies, and other entities making up the remainder. And nearly 50% of the claims arise out of benefits disputes. Other issues that may give rise to legal action include administrative errors and deficiencies in the communication of participants.
Sinclair provides businesses throughout the United States with a wide range of employee benefits products and services. In addition, we can help protect you and the individuals responsible for managing the plan in the event of an alleged or actual fiduciary breach.
From plan design to protecting your fiduciary responsibilities, we have you covered.
Give one of our professionals a call at 203.265.0996, email us, or return the form on this page to discuss your employee benefit plan and fiduciary liability risks.