Back to the question, would you answer Yes or No? Most people would answer “Yes” that their 401k plan is in compliance. But you don’t really know for sure it your 401k does comply with all provisions of ERISA. As a fiduciary it’s your job to make sure that the 401k does comply with all of the provisions of ERISA.
What if your 401k plan does not conform to ERISA and you answered the question that it does conform? Would the insurance company refuse to pay your Fiduciary Liability Insurance claim because you said the 401k did, even though it didn’t? That is definitely a possibility.
That’s why it’s a good idea to have a thorough review of your plan before you buy Fiduciary Liability Insurance.
Having a compliance review should uncover any issues that are not in compliance with ERISA. Then you have the opportunity to fix the problems before you get the insurance.
It is an extra step to take, however it is one that is well worth it. Nothing would be worse than having the Fiduciary Liability Insurance policy and finding out that the insurance company wasn’t going to pay because you told them something that wasn’t true.
To have your 401k reviewed to make sure that it is in compliance, please visit our contact page and let us know that you want a compliance review.
To obtain a quote for Fiduciary Liability Insurance visit our Fiduciary Liability Insurance proposal page.
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