Monthly Archive April 25, 2022

Which Companies Need Fiduciary Liability Insurance?

The Employee Retirement Income Security Act is a federal law that ensures employees receive all promised retirement or insurance benefits from employers. While this law protects employees, it creates liability for anyone involved in managing a company’s benefits plan.

Those involved in managing a company’s benefits plan need to know about fiduciary liability coverage and how to protect themselves.

Who Is Considered a Fiduciary? 

Anyone cited in a company’s benefits plan document or who can make decisions regarding the management of the benefits plan and its assets is considered a fiduciary. Fiduciaries may include employers, plan administrators, plan trustees, company directors and officers. Any of these people could be named in a fiduciary liability claim regarding the benefits plan.

When Does a Company Need Fiduciary Liability Coverage?

Any company that provides a retirement plan or a stock option plan for employees should make sure anyone involved in the plan has fiduciary liability coverage. The same is true for any insurance benefits, whether medical, dental, vision or health insurance.

If your business is small and does not offer any employee benefits, you likely do not need fiduciary liability coverage. However, if your company provides any employee benefits, talk with an insurance agent about coverage.

Minimizing the Risks of Sharing Your Yacht

A yacht is a significant investment, and some owners understandably seek to make those vessels profitable during the periods they don’t need or want to use them. One way to do that is by participating in a peer to peer yacht sharing service. However, if you’re thinking about taking that approach, it’s important to limit the potential risks. 

Risk Mitigation and Yacht Sharing

Start by speaking to your insurance provider and telling a representative that you intend to rent out your yacht to others. Even if you’re just thinking about that possibility, it’s wise to discuss the option with an insurer to see if it requires any policy adjustments. 

You’ll also need to thoroughly vet anyone who may share your yacht. There are always risks in letting people use things you own. Under the ideal circumstances, you’d only rent to individuals who can demonstrate evidence of their reliability and responsible behavior. 

Before seeing what opportunities exist in the world of yacht sharing, make sure your vessel aligns with all safety requirements and that you’ve done everything possible to keep occupants’ well-being in mind if an unexpected situation happens. 

Besides applying these tips, take the time to weigh the pros and cons of making your yacht available to those who want to use it. Then, you’ll be able to confidently make an informed decision about whether to proceed.