Protect Your Fiduciary Liability With Built To Suit Bonds

Protect Your Fiduciary Liability With Built To Suit Bonds

As employee benefit plans become more and more complex, so do the responsibilities of the employers offering them. Today’s standard retirement plan packages, group health insurance, and other benefits in addition to salary have diversified more than ever. With each offering comes an obligation on the employer’s part to behave responsibly with regard to the employee’s contribution to the benefits and their management. Fiduciary bonds are there to protect you financially in the event of liability exposure due to fraud or other criminal malfeasance by those employees who manage benefits plans.

What Do These Bonds Cover?

Some versions of these bonds cover just the employees within your organization who are responsible for managing plans. Others are broader, covering any outside consultants or management teams you bring on to handle the plans. Make sure you shop for the coverage and exclusions you need. Bonds pay out to cover:

  • ERISA-compliant fiduciary risk coverage to protect you in the event an employee causes a violation of the act
  • Additional protection available for cyber-fraud, depositors’ forgery, or even counterfeit currency and money order protection
  • Excess or primary coverage can be found, so you can shop for additional protection beyond the base policy allowances

Shop around until you find a provider whose program offers the broad protection you need for all your employee benefits programs. Fiduciary bonds are quite affordable when they are built to your exact coverage needs, and providers with dedicated benefit bond programs know how to do just that.