Do you administer a Staff Group Health Benefits plan, a Pension or match an RRSP contribution plan for your employees?

As an administrator, this attaches a duty of care that translates into a role as a  “fiduciary” toward the beneficiaries.  By definition this means one who holds a legal or ethical relationship of trust with one or more other parties, person or group of persons. You not only have a duty of acting in good faith with regard to the interests of another, you have an obligation which requires total trust, good faith and honesty.

Your operation may carry Directors & Officers Liability insurance as either a non-profit or commercial childcare or school.  This then provides coverage for wrongful acts by the Board and the individual Directors & Officers, subject to the definitions of wrongful acts in your policy and corresponding exclusions. In most cases, these policies cover the duties and responsibilities in managing the organization and commonly exclude obligations associated with pension and benefit plans.  The administrator may delegate some or all of its responsibilities for investing and managing the plan to a third party service provider. Whether the service is provided by your employees or a third party – the same duty of care applies. Accountability for direction setting of the plan and supervision of your’ service providers’ work cannot be delegated.  The assets of the pension fund must be invested in compliance with regulations and the administrator is ultimately responsible.

The My School Directors & Officers Liability policy now provides an option to add full fiduciary liability by endorsement. A supplemental application would be required to assess exposure and a small corresponding additional premium charged. The coverage provided with this extension provides extra defense cost insurance for your role in providing and administering the fund contributions but would not cover any shortfall in funds or under performance recovery of investment returns for your staff.

The My School Team would be pleased to provide you with the fiduciary supplement application on request and answer any questions. We remain committed to ensuring you stay well informed of your options and the trust you assume as a fiduciary.