Report: Fiduciary liability exposure increases as companies trim workers

08/15/2010 | PropertyCasualty360

Companies should include fiduciary liability insurance in their corporate risk-management program, as the economy prompts firms to reduce their workforce or adjust employee benefits, according to a report from Chubb Group. Employees have the ability to sue former employers for benefit-plan losses stemming from mismanagement, an option that may seem more appealing to workers if they are let go, the report notes. "Employees who still have jobs may not be inclined to rock the boat, but those who find themselves overboard are more likely to take legal action against employers, especially if their 401(k) plans sustained losses before they were terminated," said Chubb Vice President Christine Dart.

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