What is a Fiduciary?
A fiduciary is the person who exercises any discretionary authority or control over the management or administration of an employee benefit plan and its assets.  As a fiduciary, you are held accountable to the high standard of a “prudent expert.” This requires you to make educated decisions to benefit your plan participants, as would be expected of expert (in the field investments, for example).

Under the Employee Retirement Income Security Act of 1974 (ERISA), fiduciaries can be held personally liable for losses to a benefit plan incurred as a result of their alleged errors or omissions or breach of their fiduciary duties.  This means fiduciaries may be forced to pay for lawsuit defense costs, judgments, and settlements out of their own pockets.

What does a Fiduciary Liability Insurance Policy cover?
Your policy covers defense and settlement costs for allegations of wrongful acts, which may include:

• Breach of ERISA fiduciary responsibilities
• Improper advice or counsel
• Negligent act, error or omission in the administration of any employee benefit plan
• Imprudent investment of assets
• Conflict of interest
• Incorrect benefit calculation
• Misleading representation
• Wrongful termination of plan
• Denial or change/reduction of benefits
• Failure to adequately fund a benefit program

Make sure you are protected
If you have questions, please contact Morton Lord:
mlord@orionrisk.com or (951) 281-5356

Or for additional information, please download:

	Article 1	"401(k) INVESTMENTS:  Satisfying ERISA's Fiduciary Rules” by Fred Reish & Franklin Santagate-Source:  CFMA Building Profits, Construction Financial Management Association, Princeton, NJ - www.cfma.org
	Article 2	Sample Terms and Conditions Section of a Fiduciary Liability Policy
	Article 3	Fiduciary Liability Loss Prevention
	Article 4	Fiduciary Survey Findings
	Article 5	What Is Fiduciary Liability Insurance?