If you run your own staffing agency, you may be wondering if you need fiduciary liability insurance vs directors and officers. You may already have directors and officers, or D&O, insurance to cover management liability, but if an employee benefits plan gets mismanaged by mistake, your current policy might not include fiduciary liability coverage. Here are a few key facts you should know.
It Covers Both Individuals and Company Assets
When a lawsuit against your staffing agency arises, fiduciary liability insurance can help protect individuals and company assets involved. This can protect your business against:
- Spending excessive time, energy and resources on the case
- Being financially liable for ensuing results
- Risking company reputation in the event of a suit
Lawsuits can arise for employee benefits mismanagement, negligent investing practices, charging excessive fees or similar events, so comprehensive coverage is essential.
It Protects Employers Against Human Error Claims
A key reason to consider getting fiduciary liability insurance vs directors and officers is that without it, you may be leaving your company vulnerable to human error claims. It’s important to consider that most errors and omissions insurance does not provide coverage when a claim involves an employee, so more specific staffing insurance may be needed.
Running a staffing agency already comes with certain management risks that you can address through management insurance, but not all policies automatically include fiduciary liability coverage. You may want to use these key facts to find the coverage you need.