One of the tenets of the law of physics is that for every action there is a reaction.
So too in Pensionland. The increasing amount of dollars in retirement plans raises the stakes for fiduciaries who have now been discovered by class action plaintiff lawyers. Steven Rosenberg in his Boston ERISA Law Blog points us to a story about Travelers’ new insurance policy that will provide investment advisors and other fiduciaries with expanded coverage for the risks associated with providing investment services.
The policy will cover claims for things such as breaches of fiduciary duties owed to pension plan participants. Important coverage for advisors who will be offering investment advice to participants after the January 1, 2007 effective date under the Pension Protection Act.
Here is the link to Steve Rosenberg’s post which provides a link to the full story in the Insurance Journal.