PLANSPONSOR - August - September 2022 - 36

PROVIDER RELATIONSHIPS | FIDUCIARY INSURANCE
The Cost of Protection
A
Managing the growing expense of liability coverage
n executive is invited to sit on
his employer's retirement investment
committee. When he
relates this to his wife, a financial adviser,
she immediately asks how much fiduciary
liability insurance his employer carries-an
important detail he knew nothing
about.
This incident speaks to a somewhat
common issue, says Dick Clarke,
chief insurance officer at Colonial Surety
Company, a direct and digital insurer in
Wickliffe, Lake, New Jersey. Committee
members and plan sponsors tend to
underestimate the risks of being a fiduciary
for a retirement plan.
Clarke explains that what creates the
need for the fiduciary insurance coverage
is the bold statement under the Employee
Retirement Income Security Act that if
you are a person who has discretionaryjudgment
responsibility within an organization,
you are deemed to be personally
liable for losses to the plan.
" I'm not aware of any insurance
product that addresses that personal
liability aspect of ERISA except for fiduciary
liability insurance. Therefore, it
isn't surprising, unless someone has
made it a goal or an objective to understand
fiduciary
liability,
that
people
wouldn't understand this, " Clarke says.
Erin Turley, a benefits partner with
McDermott Will & Emery LLP in Dallas,
says insurance carriers that provide fiduciary
liability insurance to retirement
plan sponsors and their fiduciary service
providers are growing increasingly
cautious when it comes to issuing their
coverage policies. The thinking goes that
so many plan sponsors are being sued and
dragged into complex and lengthy litigation,
the basic economics of providing the
insurance are breaking down, she says.
The current frequency of ERISA
36 PLANSPONSOR.COM August - September 2022 Art by Marine Coutroutsios
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PLANSPONSOR - August - September 2022

Table of Contents for the Digital Edition of PLANSPONSOR - August - September 2022

INSIGHTS
INDUSTRY ANALYSIS
RULES AND REGULATIONS
UPFRONT
Key Player
Ever Vigilant
Open Season
Simplify the Experience
Connecting One-on-One
The Cost of Protection
FIDUCIARY FORUM
INSIDE ANGLE
PLAN PROFILE
PLANSPONSOR - August - September 2022 - Cover1
PLANSPONSOR - August - September 2022 - Cover2
PLANSPONSOR - August - September 2022 - 1
PLANSPONSOR - August - September 2022 - INSIGHTS
PLANSPONSOR - August - September 2022 - 3
PLANSPONSOR - August - September 2022 - INDUSTRY ANALYSIS
PLANSPONSOR - August - September 2022 - 5
PLANSPONSOR - August - September 2022 - RULES AND REGULATIONS
PLANSPONSOR - August - September 2022 - 7
PLANSPONSOR - August - September 2022 - 8
PLANSPONSOR - August - September 2022 - 9
PLANSPONSOR - August - September 2022 - UPFRONT
PLANSPONSOR - August - September 2022 - 11
PLANSPONSOR - August - September 2022 - 12
PLANSPONSOR - August - September 2022 - 13
PLANSPONSOR - August - September 2022 - 14
PLANSPONSOR - August - September 2022 - 15
PLANSPONSOR - August - September 2022 - Key Player
PLANSPONSOR - August - September 2022 - 17
PLANSPONSOR - August - September 2022 - 18
PLANSPONSOR - August - September 2022 - 19
PLANSPONSOR - August - September 2022 - 20
PLANSPONSOR - August - September 2022 - 21
PLANSPONSOR - August - September 2022 - Ever Vigilant
PLANSPONSOR - August - September 2022 - 23
PLANSPONSOR - August - September 2022 - 24
PLANSPONSOR - August - September 2022 - 25
PLANSPONSOR - August - September 2022 - 26
PLANSPONSOR - August - September 2022 - 27
PLANSPONSOR - August - September 2022 - 28
PLANSPONSOR - August - September 2022 - 29
PLANSPONSOR - August - September 2022 - Open Season
PLANSPONSOR - August - September 2022 - 31
PLANSPONSOR - August - September 2022 - Simplify the Experience
PLANSPONSOR - August - September 2022 - 33
PLANSPONSOR - August - September 2022 - Connecting One-on-One
PLANSPONSOR - August - September 2022 - 35
PLANSPONSOR - August - September 2022 - The Cost of Protection
PLANSPONSOR - August - September 2022 - 37
PLANSPONSOR - August - September 2022 - FIDUCIARY FORUM
PLANSPONSOR - August - September 2022 - INSIDE ANGLE
PLANSPONSOR - August - September 2022 - PLAN PROFILE
PLANSPONSOR - August - September 2022 - Cover3
PLANSPONSOR - August - September 2022 - Cover4
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