Employee Retirement Income Security Act, (ERISA), was created with the Pension Reform act of 1974. Various employee benefits where coded in this act. Group Life, Medical Expense Plan, Pension and Retirement Plans are all within the scope of this law. The Law defines the role of an administrator or employer, trust, trustee, officer, or employee who is solely responsible for the care and maintenance of the benefit plan. This individual, organization or employer is the designated fiduciary to the plan.
If you make decisions concerning your business benefit plans, you are most likely at risk of being subject to ERISA. You may personally protect yourself from being at risk for your negligent acts in the administration of our plan by purchasing Fiduciary Liability Insurance. Do not rely on Employment Liability Insurance; it does not cover all situations and you are watering down your coverage with another that has a higher potential of occurring. Also, some believe in error that there is coverage in Directors & Officers Liability Insurance; were it is usually excluded.