The truth about 401ks is that if you own your own business and your company has a 401k, you are a fiduciary. What does that mean?
It means you need Fiduciary Liability Insurance to protect yourself, your business, your assets, and your family.
Seriously, it means that you are PERSONALLY LIABLE for reimbursing the 401k plan for any losses!Even if you delegate your duties to other people like an investment advisor or an investment company, you are personally liable for reimbursing the plan for any losses.
Yes you are personally liable. Scary isn’t it?
All of your personal assets like your home, your cars, your savings accounts; they are all at risk if you don’t do your job as a fiduciary and if you dont have Fiduciary Liability Insurance.
Recent studies indicate significant increases in lawsuits over the past several years. Here are some frightening statistics that you should know.
-401k Plan fiduciaries now surpass the medical profession as a target for litigation.
-The average lawsuit has surpassed $800,000–up from $700,000 just five years earlier. Defense costs during this same period rose 471%.
-More than 90% of lawsuits are filed by employees.
This is why you need Fiduciary Liability Insurance. Fiduciary liability insurance is a popular vehicle for the financial protection of fiduciaries of 401k plans against legal liability arising out of their role as fiduciaries, including the cost of defending those claims that seek to establish such liability.
As a matter of fact, if you are sued for breach of fiduciary duty and you don’t have Fiduciary liability insurance in place, you could be held liable for not having the proper coverage.
Policies start at just $357.50 per year. It’s a cheap and affordable way to protect you, your business, your family and your assets.
To obtain a quote for Fiduciary Liability Insurance visit our
Fiduciary Liability Insurance proposal page.
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