IT Service Providers Explore High Limit Fiduciary Coverage Options
Real-World Examples and Data
According to a study by the U.S. Department of Labor, companies with robust fiduciary coverage are better positioned to handle legal challenges related to employee benefit plans1. Furthermore, industry reports indicate that the average cost of defending a fiduciary claim can exceed $100,000, making high limit coverage a financially prudent choice2.
In recent years, several high-profile cases have underscored the importance of fiduciary coverage. For example, a leading IT service provider faced a multi-million dollar lawsuit due to alleged mismanagement of a client's retirement plan. Fortunately, their fiduciary insurance covered the legal expenses and settlement, allowing them to continue operations without financial disruption3.