Does Fiduciary Liability Cover Legal Defense?
Many fiduciary policies pay or advance defense costs for covered claims, subject to limits, retention, and consent rules.
Ask the insurer how defense counsel is selected, whether costs erode the limit, whether any separate defense limit applies, and when the retention must be paid.
Check whether the policy advances expenses as they are incurred or reimburses later, and how it allocates costs when a complaint names insured and uninsured parties or covered and uncovered allegations. Follow the issued policy’s notice directions as soon as you receive a demand or proceeding.
