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Fiduciary Liability Insurance & Fidelity Bond Brokerage
Trustees of multiemployer plans agree to perform a valuable service for their fund. They also take on a tremendous responsibility – and if something goes wrong, they can be held liable.
Segal understands what's at stake. We are the largest insurance broker dedicated to fiduciary liability insurance and fidelity bonds for multiemployer plans, which gives us unmatched recognition in the insurance marketplace. We have many years of professional experience obtaining customized liability policies, fidelity bonds and competitive premium renewals.
What is fiduciary liability insurance?
Fiduciary liability insurance protects multiemployer plans and trustees against lawsuits alleging a breach of fiduciary duty as well as administrative errors or omissions. This insurance pays for defense costs, settlements and judgments. An additional waiver of recourse rider, which must be paid for with non-plan assets, ensures that trustees' personal assets are also protected from any losses.
What are fidelity bonds?
ERISA requires that every fiduciary of an employee benefit plan and every person who handles plan funds be bonded. These bonds cover the plan from loss of assets due to fraud or dishonesty. Unlike fiduciary liability insurance, fidelity bond coverage is triggered by the discovery of the fraud or dishonesty, rather than a third party demand or lawsuit.
We recommend that plans either require that plan vendors (defined as outside agents in the fidelity bond) who handle plan assets provide evidence that they have a current, ERISA-compliant bond or else purchase this broader coverage themselves.
We specialize in multiemployer fiduciary liability
Segal's expertise in the multiemployer fiduciary liability insurance field is unparalleled. We have been offering brokerage services since ERISA was enacted in 1975, and we were instrumental in developing the language of the original fiduciary liability insurance policy. Today, we broker over a thousand multiemployer plans - more than any other broker in the multiemployer field.
We can also help trustees obtain union liability insurance, associated errors and omissions insurance such as employment practices liability, identify theft coverage, and cyber liability.
A broker you can trust
Segal is one of the nation's most trusted brokers for fiduciary liability insurance. Here's why:
- Experience: Our current staff includes eight licensed insurance brokers with over 100 years of aggregate experience and an average of almost 15 years per broker. Segal and our professional brokers maintain requisite insurance licenses nationwide.
- Knowledge: Our clients, fund counsels and insurance carrier underwriters recognize our technical knowledge of multiemployer fiduciary liability insurance. We regularly exchange technical communications and host educational webinars for each group.
- Transparency: Segal accepts only industry standard commissions. We neither negotiate nor accept from insurers any incentive or profit-sharing revenues. We annually disclose to our clients all commissions earned.
- Service: We strive to provide excellent client service. With our specialized knowledge, we can explain complex coverage issues, respond to inquiries, and clearly and effectively communicate the technical aspects of these coverages to the board of trustees.
- Resources: We use a proprietary and confidential fiduciary liability insurance benchmarking database that currently analyzes the activities of more than 1,000 multiemployer plans. Our benchmarking database, the most comprehensive of its kind, can help trustees decide what limit of liability to purchase and evaluate the competitiveness of a quoted premium. Because this database is updated annually, it can also help identify limit of liability and premium trends.
Our insurance brokerage services include:
- Policy review, analysis and comparisons
- Market strategy and proposed coverage specifications
- Coverage negotiations, including underwriting meetings
- Quotation communications, including recommendations
- Invoicing, premium collection and remittance to insurer
- Policy review and transmittal
- Claims processing and follow-up
- Limited claims adjustment services, including discussing claim issues, providing insights based upon our broker experience, and arranging and attending underwriter-focused claims meetings
- Q & A services, as needed
- Presentations to the fund's staff, board of trustees and subcommittees, as requested
- Periodic Segal publications and webinars
- Benchmarking for premium and limit of liability analysis
To discuss how Segal can help you and your fund with fiduciary liability insurance and fidelity bonds, contact us today.
Get a complimentary assessment of your plan's fiduciary liability insurance policy
Segal will review your policy and use our comprehensive benchmarking database to tell you how your limit of liability and premium costs compare to the market. For your complimentary policy review, email us at bsmith@segalco.com.
