Fiduciary Liability:
Protects individuals charged with the responsibility of creating, managing and administering employee benefit and retirement plans.
Allegations against those fiduciaries include:
- providing poor or negligent investment practices
- failure to offer appropriate investment options
- charging unreasonable fees
- inadequate communications and a lack of guidance and educational services
- or any action or decision deemed not in the best interest of the plan participants
- Affirmative coverage for Settlor capacity
- Determination of eligibility or vesting of benefits included in definition of administration.
- Civil and Tax penalties sublimits included:
- Section 522(c) of ERISA
- Privacy violations of HIPAa
- Violation of Patient Protection and Affordable Care Act
- Pension Protection Act of 2006
- Imposed by the Pension Ombudsman pursuant to the Pension Scheme Act of 1993, the Pensions Act of 1995, and the Pensions Act of 2004
- Imposed by Irelands Pensions Board or Pensions Ombudsman
- IRS Section 4975
- Broad definition of Sponsored Plan including any supplemental executive plan, top hat plan of fringe benefit plan.
Crime Liability:
Provides coverage for loss of money, securities, or other tangible assets resulting from acts such as employee theft, certain types of fraud by third parties (forgery), theft of property from the premises, and social engineering.
Crime policies covers loss of money securities or other tangible assets through fraud, embezzlement, forgery, misrepresentation, robbery, theft or any other type of business-related crime on the company.
These crimes can be perpetrated by an employee of the organization stealing from the organization or one of its customers or a third party.
- An employee setting up phantom vendors or phantom employees
- 3rd party intercepting funds transfers
- Inventory theft whilst in transit or on premises
- Social Engineering
- Forgery of financial documentation such as checks, or money orders