Startup Coverage
Fiduciary Liability.
If your company sponsors a 401(k), health plan, or other employee benefit program, ERISA exposes plan administrators and committee members to personal liability for fiduciary breaches: imprudent investment selection, failure to remit deferrals on time, disclosure lapses, or plan mismanagement. Fiduciary Liability insurance covers defense costs and damages for these claims, which can arise even when administrators acted in good faith.
Fiduciary Liability Insurance for Startup 401(k) Plan Sponsors
If your company sponsors a 401(k), health plan, or other employee benefit program, ERISA exposes plan administrators and committee members to personal liability for fiduciary breaches: imprudent investment selection, failure to remit deferrals on time, disclosure lapses, or plan mismanagement. Fiduciary Liability insurance covers defense costs and damages for these claims, which can arise even when administrators acted in good faith.
How OnePark Risk Helps
As startups scale their teams and formalize benefit programs, fiduciary exposure grows significantly. OnePark Risk typically structures Fiduciary Liability alongside your D&O program to avoid gaps in how officer liability is allocated. We ensure plan committee members are individually protected and that the company can defend ERISA litigation without disrupting operating capital or triggering personal indemnification demands from board members.
Fiduciary Liability Coverage Areas
- Plan investment selection and monitoring claims under ERISA
- Failure to remit employee deferrals or contributions timely
- ERISA disclosure and required reporting violations
- Benefits denial and improper plan enrollment disputes
- DOL investigations and voluntary correction program costs
- Breach of co-fiduciary duty claims against committee members