ERISA

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal statute that establishes minimum standards for pension plans in private industry and provides for rules on transactions associated with employee benefit plans.

ERISA was enacted to protect the interests of employee benefit plan participants and their beneficiaries by requiring the disclosure to them of financial and other information concerning the plan; by establishing standards of conduct for plan fiduciaries; and by providing for appropriate remedies and access to the federal courts.

ERISA also requires that business that provide employee benefit plans, such as a 401(k), also carry ERISA insurance. The insurance reimburses covered plans for loss due to fraud by a trustee, officer, employee, administrator or a manager, except an administrator or a manager who is an independent contractor. The amount of coverage must be at least 10% of the plan's assets up to $500,000, whichever is less.

Coverage is available as an endorsement to certain policies, such as the business owners policy, or on a stand alone basis.

For more information on ERISA coverage please contact us.