When a claim occurs, our goal mirrors that of our customer: To resolve it as quickly and fairly as possible. To achieve this goal, Small Business draws on the our vast claims handling resources, including experienced claims specialists and the nation's premier defense attorneys, who have expertise managing even the most complex, sensitive claims and litigation.
To report an claim, download our claim reporting form and submit it via one of the following methods:
Mail: c-Claim for Financial Lines
175 Water Street, 9th Floor
New York, NY 10038
Fax: 866-227-1750
Claim Scenarios:
Courts Say Don't Wait …
In the case of Barker v. American Mobil Power Corporation, the court held an individual personally liable for losses to a benefit plan while stating that, "While we are not unsympathetic to his burden, we note that fiduciaries may be insured for this type of liability. It would appear that prudent fiduciaries would have their plan or employers secure such insurance."
Repaying 401(k) Losses
An advertising agency owner was ordered by the court to repay more than $120,000 to two 401(k) plans for which he was the trustee. He has also been sued for several thousand dollars more. Among the allegations against him: making improper loans from the plans, failing to collateralize participant loans, failing to secure fidelity bonds for the plans, filing inaccurate 5500s, and failing to value plan assets at fair market value.
Small Plan Creates Large Scale Liability
Two consultants must restore $287,000 to their practice's money purchase pension plan following a suit by the Department of Labor (DOL). The suit alleged that the consultants, who were also the plan's trustees, failed to diversify plan assets, resulting in significant losses to the plan.
Class Action Suit Alleging Breaches Of Fiduciary Duty
A class action suit was filed on behalf of participants in a defined pension benefit plan alleging breaches of fiduciary duty arising out of the conversion of that plan to a cash balance plan. Plaintiffs claimed that inappropriate mortality assumptions and discount rates were used in calculating the lump-sum cash-out values, and that the conversion impermissibly eliminated retirement-type subsidies to save the sponsor money by maximizing the surplus assets in the converted plan. Plaintiffs alleged that the insured's failure to "grandfather" employees with longer service resulted in a decrease in accrued benefits in violation of ERISA, and sued for millions of dollars in damages.