Even if a company has good intentions, certain fiduciary mistakes can lead to costly ERISA litigation. Here are a few examples, drawn from real-world cases:

1. Overpaying for Services: Hiring a vendor that charges significantly more than market rates—without documenting why—can raise red flags.

2. Limited Investment Options: Offering employees only a handful of poorly performing or high-fee funds while ignoring low-cost alternatives like index funds.

3. Failure to Monitor Providers: Once hired, vendors must be monitored. Renewing contracts without reviewing performance metrics or fees can be seen as a breach of duty.

4. Lack of Documentation: Fiduciaries must record their decision-making processes. Courts do not accept verbal recollections as substitutes for written proof.

5. Conflicts of Interest: Hiring a provider with close business ties to the company—especially if that provider earns indirect compensation—can appear self-serving.

The key takeaway: fiduciary breaches are often about process, not outcome. A mediocre investment may be acceptable if chosen through a documented, prudent process. A great investment may still lead to litigation if the selection process was sloppy or biased.