MENUMENU
  • FREE RESOURCES
        • Accounts Payable
          Finally! The trick to securing greater T&E compliance
          Benefits
          Rooting out folks who don’t belong on your health plan: A 6-point dependent audit checklist
          IT
          3 costly misconceptions about biz email compromise
          Credit and Collections
          Collecting via email: 4 must-make moves in your subject line
          Accounts Payable
          5 Tough-to-spot signs that an invoice is fake
  • PREMIUM CONTENT
        • Staff management
          120 Proven Communications Tips for Today’s CFO
        • Payroll
          Handling Nonexempt Employee Pay: Stay Compliant and Avoid DOL Audits
          Accounts Payable
          T&E Best Practices: Complete Guide to Ensure Compliance
          Payroll
          Payroll Best Practices: 4 Ways to Save Time and Money
        • Staff management
          Email Best Practices: A 6-Question Quiz
          Staff management
          Innovative Communications Strategies: An Email Case Study
          Staff management
          A 5-part Framework for Successful Workplace Communications
        • SEE MORE
          PREMIUM RESOURCES
  • CORONAVIRUS RESOURCES
  • LOGIN
  • SIGN UP FREE

CFO Daily News

MENUMENU
  • FREE RESOURCES
        • Accounts Payable
          Finally! The trick to securing greater T&E compliance
          Benefits
          Rooting out folks who don’t belong on your health plan: A 6-point dependent audit checklist
          IT
          3 costly misconceptions about biz email compromise
          Credit and Collections
          Collecting via email: 4 must-make moves in your subject line
          Accounts Payable
          5 Tough-to-spot signs that an invoice is fake
  • PREMIUM CONTENT
        • Staff management
          120 Proven Communications Tips for Today’s CFO
        • Payroll
          Handling Nonexempt Employee Pay: Stay Compliant and Avoid DOL Audits
          Accounts Payable
          T&E Best Practices: Complete Guide to Ensure Compliance
          Payroll
          Payroll Best Practices: 4 Ways to Save Time and Money
        • Staff management
          Email Best Practices: A 6-Question Quiz
          Staff management
          Innovative Communications Strategies: An Email Case Study
          Staff management
          A 5-part Framework for Successful Workplace Communications
        • SEE MORE
          PREMIUM RESOURCES
  • CORONAVIRUS RESOURCES
  • Accounts Payable
  • Credit and Collections
  • Payroll
  • Accounting
  • Benefits
  • Finance Technology
  • More
    • Employment Law
    • Strategy
    • Policy and Culture
    • Fraud
    • Payments and Transactions
    • Budgeting and Forecasting
    • Banking
    • Staff Management
    • Cost Control
    • Supply Chain
    • IT

Reducing your fiduciary liability: Is this safeguard right for Finance?

Jared Bilski
by Jared Bilski
January 26, 2017
  • Benefits
  • Policy and culture
2 minute read
  • SHARE ON

Two words that have caused a lot of headaches and stress for finance chiefs in recent years: Fiduciary Duty. As a result, an increasing number of employers are turning to an additional safeguard.

The safeguard we’re referring to is fiduciary liability insurance.

It’s a step many of your peers are taking to protect themselves from a fiduciary breach. And with good reason.

All it takes is a minor misstep to wind up on the hook for a fiduciary breach. That’s even true in certain situations where the mistake is accidental.

What’s worse, company execs — such as the CFO — have been held personally liable in a number of fiduciary breach lawsuits.

Plus, many financial industry experts don’t foresee the new Fiduciary Rule going away under the Trump administration. That means even more stringent standards for plan sponsors to adhere to.

For employers, the questions becomes: “How do I know if fiduciary liability insurance is right for me?”

At the 2016 Association for Financial Professionals conference, a panel discussion tackled this topic and offered some insight for finance pros on the fence about this option.

Strictly a voluntary proposition

When it comes to fiduciary liability insurance, employers need to keep in mind that employers are never required to carry this protection.

The policy is strictly a voluntary proposition.

In many cases, employers purchase the coverage for their fiduciaries. However, some individuals will purchase this insurance to cover themselves. Reason: The insurance policies will cover claims and losses from fiduciary duty breaches.

According to experts, the ideal candidates for fiduciary liability insurance are: Retirement plans with policies that allow for recourse against any fiduciary who breached its duty to the plan.

Before employers start getting quotes on this type of policy, it’s best to check your company’s general liability insurance policy first. That’s because many policies cover some fiduciary liability and, depending on your situation, that may be enough.

Based on the presentation “401(k) Plan Management Best Practices” at the 2016 Association for Financial Professionals conference in Orlando.

 

 

Keep Up To Date with the Latest Finance News

With CFO Daily News arriving in your inbox, you will never miss critical stories on accounting, benefits, payroll & employment law strategies.

Sign up for a free CFO Daily News membership and get our newsletter!
  • This field is for validation purposes and should be left unchanged.
CFO Daily News Logo
  • ABOUT CFO DAILY NEWS
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Accounting
  • Benefits
  • Payroll
  • Policy and Culture
  • Employment Law
  • Fraud
  • Finance Technology
  • Accounts Payable
  • Credit and Collections
  • Strategy
  • Payments and Transactions
  • Budgeting and Forecasting
  • Banking
  • Staff Management
  • Cost Control
  • Supply Chain
  • IT

CFO Daily News, part of the SuccessFuel Network, provides the latest Finance and employment law news for Finance professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day’s headlines, CFO Daily News delivers actionable insights, helping Finance execs understand what Finance trends mean to their business.

Privacy Policy Terms of Service
Copyright © 2021 SuccessFuel

WELCOME BACK!

Enter your username and password below to log in

Forget Your Username or Password?

Reset Password

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

Log In

preloader