Fund Trustees Face Exposure in a Variety of Ways

Fiduciary liability covers a variety of situations that financial departments face in managing a company’s funds. A fiduciary is anyone who oversees these funds, whether they are a financial director, employee or even a third party. Profit-sharing, health benefits, pensions and more fall under this category of managed funds.

Fiduciary Liability

Fiduciaries may not even be aware that their position exposes them to penalties, fines and lawsuits. Fiduciary liability insurance claim examples include:

  • Conflict of interest
  • Breach of fiduciary duty
  • Not filing the required reports
  • Making errors in matters affecting benefit eligibility
  • Making reckless investments and failing to diversify them

Congress passed a law in 1974 that attaches personal liability to benefits plan trustees for losses in those funds. The losses must result from a breach of their fiduciary responsibilities or their errors and omissions.

Situations Prompting Claims

Fund trustees are exposed to personal risk in a variety of situations. Some fiduciary liability insurance claim examples include:

  • Participants in a stock plan sued their company over excessive executive bonuses
  • Employees in a pension/profit-sharing plan sued for failure to diversify investments
  • An employee sued for failure to follow his instructions to reallocate funds in his 401 (k) plan

Fiduciary liability is one of several insurance types that can be included in management liability insurance. For fiduciaries themselves, it is a must.

An Insurance Policy Designed With the Staffing Industry in Mind

Staffing agencies are subject to more class action lawsuits than most any other industry today. From negligent hiring to failure to act, there are a number of reasons that a staffing agency may be sued, which is why it is so important that you, as the owner of an agency, invest in staffing agency insurance. The right professional liability policy can protect you from assuming financially liability when a company is dissatisfied with your services and files a claim against you because of it.

The most common reason that staffing agencies are sued is because of placement. Companies pay staffing agencies a lot of money to find them the ideal candidates, so when an agency provides wrong or improper workers, fails to test or screen applicants properly or misrepresents a candidate in order to produce some results, those companies may choose to sue. A sound errors and omissions policy can cover the cost of attorney fees, court fees and if applicable, settlement awards.

Though you may do your best to yield the best possible candidates for your clients, mistakes do happen. Protect yourself from costly mistakes and work with an insurance company that specializes in staffing agency insurance. It may be the best investment you make for your firm this year.

Types of Freight Insurance

Accidents happen, and natural events may impact goods while in transit. Freight claims are the method used to recover some of the loss. Understanding the difference between freight insurance and freight liability insurance is paramount to choose the coverage that is right for your clients’ business needs.

Freight Insurance

Freight insurance also called cargo insurance, does not require proof that the carrier was responsible for damage or loss of a shipment, only that it occurred. The cost is generally based on the on the declared value of goods being shipped. This is a much more accurate way to recover loss for heavy items than carrier insurance, which places a per pound value a shipment. Claim payments can typically be received within 30 days.

Freight Liability Insurance

This type of solution can cover the full value of the goods being shipped. Once the shipper has proven that a shipment was unreasonably late or delivered damaged, the carrier may be required to establish a carrier defense. If it fails to do so, the shipper may be entitled to the recover the actual shipment amount.

Freight carriers, property brokers and warehouse operators can purchase specialty coverage from freight liability insurance to freight forwarder coverage. Policies are designed to protect them against claims of damaged or missing freight. Coverage can be purchased to cover goods that are lost in transit via air, ocean rail and truck.