Zurich Loses Appeal Over $500,000 Claim Involving 401(k) Plan

Zurich American Insurance Co. must face revived litigation by a staffing company seeking insurance coverage for about $500,000 it spent correcting errors in how it managed its workers’ 401(k) plan, the Eleventh Circuit held.

The money North American On-Site LLC spent correcting clerical errors surrounding its retirement plan are damages that are covered by its insurance policies with Zurich, the US Court of Appeals for the Eleventh Circuit said Monday in an unpublished opinion. The court vacated a decision upholding the insurer’s coverage denial and sent the case back to district court for consideration of Zurich’s other defenses to ...