HUB International Ontario is Canada’s largest Multi-Employer Fiduciary Liability Insurance provider for Pension and Employee Benefit Trust Funds. With over 30 years’ experience, we understand the complex liabilities and legal vulnerabilities faced by fiduciaries.
As fiduciary, a Board of Trustees owes the beneficiaries of the Benefit Plan (i.e., Pension, Health and Welfare) a "duty of loyalty" by "acting prudently" according to plan documents. Most fiduciary liability claims occur because of allegations that these fiduciary duties have been breached through mismanagement, negligence or simply a mistake. Even the most diligent of fiduciaries can find themselves faced with the allegation of a “wrongful act”. Maintaining adequate Fiduciary Liability and Fidelity insurance protects plan assets and fiduciaries from these legal vulnerabilities, and so is part of prudent plan management. In addition to arranging insurance for plan trustees, HUB Ontario also plays a role in educating fiduciaries on the importance of insurance protection as a loss prevention tool.
Making an informed decision about good governance as it relates to loss prevention should begin with an understanding and awareness of the potential for claims. Trustees can never fully insulate themselves from liability. But their exposures can be greatly reduced, if not eliminated completely, by accepting the principle that the purchase of adequate insurance protection is the prudent course to take.