Wednesday, September 6, 2017

What is covered under a fiduciary liability insurance policy?

This  type  of insurance  is  well known  for  the  adequate  protection that  it  offers employees  against   various  liabilities  that   might  come  up  in while  such employees are  still in their  capacity as fiduciaries. The most commonly used being the separate and the stand-alone Fiduciary insurance policy. It  is  important  to  note  that  is  you  are  expecting  pension, employee benefits  or some  sort  of  savings, then    you might  be predisposed  to   the   various  beneficiaries  that  may arise  as  a result  of   a  breach  of  the  above  fiduciary  responsibilities.

In the  event that  a  particular  employers   acts  in a manner  that  is  deemed  to be  dishonest  in regards  with  an  employee’s  finances,  such  and  employer  might  invoke  the  use  of a fidelity  bond. Such  usage  of  the  fidelity  bond is  a  legal  requirement  in most  countries.

 A  fiduciary  can also be   held  accountable  for any acts  of  non-inclusion of separate  groups that  are   tasked  with the  responsibility of  overseeing  various  administrative  roles in an organization. The  other  type of  insurance   related  to the  fiduciary insurance  is  the employee  benefit liability  which protects  the employees  from  various  claims  that might  arise  from  some  form of   errors in  the  implementation of  a particular employee benefits  scheme. It  is  of great  significance  to note  that  fiduciary  insurance  many or may  not  involve  employee benefit liability as this  is  dependent  on the type of fiduciary  insurance policy being  used.

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