Overview

Virtually every move made by small business owners, directors, officers and other "fiduciaries" responsible for employee pension and welfare benefit plans is regulated by the Employee Retirement Income Security Act of 1974 (ERISA). And as ERISA is steadily amended, the obligations - and potential liabilities - of fiduciaries continue to expand.

As a result, odds are greater than ever that a business owner will land in court, defending allegations that they somehow breached fiduciary duties. These lawsuits can put a business - not to mention a business owner's personal assets - at stake.

Even businesses offering only "self-directed" 401(k) plans are at significant risk. In fact, small businesses can be especially vulnerable, because a sizeable lawsuit or penalty could drive them into bankruptcy. And if a business embarks on a merger or acquisition, a lawsuit becomes even more likely.

Chamber Insurance Agency Services gives business owners a simple and affordable way to protect plan assets-and their personal assets: ERISA Liability Insurance. This insurance provides broad coverage for a wide range of fiduciaries and benefits plans-pension and welfare plans, qualified and non-qualified plans, newly created plans, and more.

Coverage Highlights

• Coverage for qualified and non-qualified pension and welfare plans, foreign or domestic, except for ESOPs and multi-employer plans
• Coverage for pension plans inadvertently not reported to the insurer
• Coverage for fact-finding U.S. Department of Labor and PBGC (Pension Benefit Guaranty Corporation) investigations
• Coverage for pension plans of newly acquired subsidiaries with less than ten percent of the sponsor company's total assets
• Insured has the right to participate in their own defense, subject to eligibility guidelines
• Insured can assume duty to defend; if assumed, insured receives automatic advancement of defense costs, based on availability
• Programs may offer access to ERISA panel counsel