Texas Insurance Agency works with local businesses in the energy and construction industries to help provide protection against the unexpected. These industries in particular are risk-heavy. Sudden accidents can result in pricy and lengthy lawsuits.
Our insurance agents understand the daily risks your business takes and connects you with a policy to protect you from these vulnerabilities. Other difficulties can arise from internal issues, such as benefit management. A strong fiduciary liability insurance policy can help pay for legal fees that may result.
Call our agency toll-free at (877) 952-1010 for a free, in-depth consolation. We are dedicated to creating informed clients. Our agents will happily examine your existing policy and provide you with any information that you may need to make this business decision.
On behalf of the insured, fiduciary liability insurance pays the legal liability that comes from claims for alleged failure to act within the meaning of the Pension Reform Act of 1974. Suits against fiduciaries may include:
An insured is basically defined as an employee benefit plan, any trustee, officer or employer who happens to be the sole sponsor of a plan. The insured may also be any other individual or organization designated as a fiduciary. Fiduciaries can be held personally liable for losses to a benefit plan that may arise because of the Employee Retirement Income Security Act.
Employee Retirement Income Security Act
The government has taken steps to create methods for saving money for retires other than social security. One of the major federal laws to do this is the Employee Retirement Income Security Act of 1974 (ERISA). ERISA imposed standards on private industries with regard to pension plans. It also put in place guidelines for how funds in these plans are taxed.
Four years after ERISA was passed, Congress enacted another statute allowing 401(k) plans. This statute became effective in 1980, and it's reported that there are now over 10 times as many participants in 401(k) plans as there was at the start.
ERISA contains a provision that makes fiduciaries personally liable for mismanagement of them. ERISA violations are actually excluded by standard D&O policies. Considering the number of employees that many companies have, improper management of a retirement plan can easily wipe out the assets of a fiduciary.
Fiduciaries are exposed to extensive liability and this is why obtaining fiduciary liability insurance is crucial. Many directors and executives have the common misconception that their liability insurance will cover them in the event of negligence or mismanagement of an employee benefit plan. In most cases, these plans have provisions specifically excluding coverage for this sort of liability.
Throughout the years, our agency has assisted many Texas businesses in obtaining this vital protection. Contact Texas Insurance Agency to obtain a free quote on a strong fiduciary liability insurance policy.