What Is Fiduciary Liability Insurance?
Fiduciary liability insurance covers certain claims alleging mishandling of duties connected with an employee benefit plan.
The policy defines covered people, plans, and losses. It can help with covered defense costs but does not eliminate fiduciary duties.
A policy is a contract, not a substitute for performing fiduciary duties or a bond for dishonest handling of plan property. For example, a Travelers specimen defines insured persons, plans, wrongful acts, claims, and loss separately. Check the quote for covered plan types, insured people and entities, claims-made dates, exclusions, defense-cost treatment, and any retention. The specimen is illustrative; another insurer’s wording can differ.
