Do Fidelity Bonds provide protection for plan fiduciaries?
The majority of NAPLIA’s Investment Advisor clients carry a $1 million limit which should be adequate in most cases. However, it is important for advisors to evaluate their own business, including a full comprehension of their exposure. If the assets under management are larger than the typical practice, the exposure may warrant a $2 million limit. Again, evaluating exposure is the key. The E & O policies that we offer provide entity coverage. In other words, the entity as well as the employees and representatives working on behalf of the entity are covered at the policy limit. Many B-D polices provide coverage for only the representative. This is why it is important to determine who is listed in the policy as a “named insured.
Related Questions
- How can I get information about Fidelity Electronic Funds Transfer transactions in brokerage and college savings plan accounts?
- The plan investments are selected by the plan fiduciaries. How do I calculate the overall rate of return for the plan?
- Do Fidelity Bonds provide protection for plan fiduciaries?
