The event that leads to a claim can often be unintended. Although losses happen infrequently, the costs can be high, and dealing with allegations is time-consuming. There are no caps or maximums on damages.
Under ERISA, fiduciaries can be held personally liable for errors and omissions in administering plans. Even if many responsibilities are delegated to an outside investment firm, the organization and fiduciary are liable for the selection and continued oversight of that firm.
Smaller organizations may not have personnel dedicated to employee benefits or the resources to evaluate advice and service provided by outside plan providers.
EPLI policies also help insureds be proactive. Many insurance companies provide resources to policyholders at no charge – sample applications, exit interview forms, reprimand letters, employee handbooks as well as web-based training and articles.
MSVIA encourages practices to look into management liability insurance policies. We would be happy to provide more information, or we can review the practice’s entire insurance program.