Fiduciary Liability Insurance Provided By Our Agency

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Protect Your Business From Liability Risks Associated With Employee Benefit Plans

If you manage employee benefits, even with good intentions, you may be personally liable for any mistakes. Fiduciary liability insurance helps protect you and your business from claims related to mismanagement of employee benefit plans.

Fiduciary liability insurance provides coverage for businesses and individuals who manage employee benefit plans. Whether it’s a pension, health plan, or profit-sharing plan, if you have decision-making authority over those plans, you may be considered a fiduciary—and that comes with responsibility.

This coverage protects you from claims alleging breaches of fiduciary duty, such as:

  • Administrative errors
  • Mismanagement of plan assets
  • Failure to provide adequate investment options
  • Errors in advising employees about plan options
  • Conflicts of interest

If a claim arises, fiduciary liability insurance can help cover legal defense costs, settlements, or judgments.

If you oversee, manage, or advise on employee benefits, you’re exposed to fiduciary risks. This coverage is ideal for:

  • Employers offering retirement or health plans
  • Plan administrators and trustees
  • Company executives and HR professionals
  • Business owners making decisions on behalf of benefit plans

Even if you hire third-party providers to manage your plans, you could still be held responsible for their actions. That’s why fiduciary liability insurance is a smart safeguard for any organization providing employee benefits.

A fiduciary liability policy typically includes protection for:

  • Legal defense expenses in case of lawsuits or regulatory actions
  • Settlements and judgments resulting from fiduciary claims
  • Breach of duty, including imprudent investments, errors in plan administration, or delays in benefit disbursement
  • Miscommunication or lack of disclosure to employees about benefit options

This insurance helps ensure that both your business and your personal finances are protected if a claim arises.

Many employers assume that the ERISA fidelity bond is enough, but that’s a misconception. An ERISA bond protects the plan from theft or fraud by people who handle plan assets, but it doesn’t cover fiduciary breaches or administrative errors.

Fiduciary liability insurance, on the other hand, covers a broader range of issues, including mismanagement and breach of duty. To fully protect your business, it’s wise to carry both.

At Sargent Insurance, we understand the challenges local businesses face in managing employee benefits. As a family-led, Arkansas-based insurance agency, we’re committed to helping you navigate fiduciary liability with confidence.

When you partner with us, you get:

  • Trusted local guidance from a team that truly knows your community
  • Tailored insurance solutions that match your company’s structure and benefit offerings
  • Prompt, proactive service from advisors who are always here to help

Let’s Get Started Together

Protecting your home starts with a conversation. Whether you're building, buying, or just reviewing your current plan, we're happy to help. No pressure. No hassle. Just honest, neighborly advice.

Call us today or request a callback. We’re always just down the road and ready to help you protect what matters most.

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