Travelers Canada Fiduciary Liability coverage can protect your organization, its benefit administrators and benefit plans from claims arising from denials or changes to a benefit plan, processing and administration errors, improper advice, conflict of interest, failures in selecting and monitoring third-party providers and more.
As fiduciary standards evolve, they are subject to a wide range of interpretations. As a result, exposures will likely expand even as increased litigation has led to increased regulatory scrutiny and boosted efforts to solidify uniform codes. At Travelers Canada, our wide view of the marketplace and its exposures enables us to understand your fiduciary risks and help you remain a step ahead in managing them.
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Fiduciary. It's hard to say. It's hard to understand. And you might be a fiduciary without even knowing it. So here's the deal. If you manage a health or retirement plan, or have the authority to control the plan's asset, you're a fiduciary. You won't see that word on your business card. But it's your duty to select and monitor advisors and investments, minimize expenses, and follow plan documents. That's a lot of responsibility and liability.
A fiduciary can be held personally liable for a breach of duties under the Pension Benefit Standards Act. And the risk is always out there. Your company could be sued, and you could be sued. Make the wrong choices and it could be your money and your assets at risk.
Consider this. Independent contractors working for three seasons at a company believed they were eligible for the employer's retirement plan. When the company denied that the contractors were eligible, the contractors sued the company for retroactive matching contributions to the retirement plan and earnings on those contributions. Defense costs were approximately $1 million.
Here's another case. Employees participating in their company's RRSP sued the plan sponsor, the plan's investment fiduciaries, and individual plan fiduciaries, alleging that they breached their fiduciary duties under the Pension Benefit Standards Act. How? By allowing the plan to incur excessive record-keeping and investment fees. By failing to eliminate underperforming investment options. The lawsuit was ultimately settled for $14 million, but not before racking up over $2 million in defense expenses.
Here's the bottom line. The average cost of a fiduciary liability case tops $1.2 million. What's more? Government regulators are always watching for irregularities. With risks like these and those not yet discovered, you need an insurance company who can help protect and prepare you for what may coming your way. That's why Traveler's Fiduciary Liability Coverage isn't a maybe, but a must have. Talk to your insurance broker today to make sure you have the right coverage in place to help protect your business.
Text. Travelers. Talk to your insurance broker today. travelers canada.ca. Travelers Canada, 165 university avenue, Toronto, O N M5h 3 8 9. This material is for informational purposes only. All statements herein are subject to the provisions, exclusions, and conditions of any insurance policy issued by travelers Canada. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy provisions, and any applicable law. copyright 2021 Travelers Canada. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of the Traveler's indemnity company and Canada Insurance company of Canada, the U.S. and other countries. Travelers insurance company of Canada, the dominion of Canada general insurance company and St. Paul fire and Marine insurance company, Canada branch, are the Canadian licensed insurers known as Travelers Canada.
Travelers Canada fiduciary liability coverage is critical to the well-being of your company – particularly given the growing exposures in today’s volatile climate. It covers errors and omissions that impact your company’s benefit plans and helps protect its directors, natural person trustees, officers and employees from costly litigation.