Fiduciary Liability Under ERISA
Few CFOs and HR managers recognize that personal liability under ERISA cannot
be shifted to their employer. And, even though ultimate financial cost
may fall to the corporation though indemnification provisions in the
corporation's by-laws, this cost may be significant. ERISA claims are among the
most costly to defend because of the Byzantine nature of the law itself. Is the HR manager
an officer of the corporation and even entitled to indemnification protection?
In many firms, the answer is no.
Without the protection of Fiduciary Liability insurance, employers face serious financial risk. Employees charged with
acting as fiduciaries, which ERISA can impose even without the employee's knowledge,
face potentially devastating personal liability.
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