---
title: "What Is Fiduciary Liability Insurance?"
description: "Fiduciary liability insurance covers certain claims alleging mishandling of duties connected with an employee benefit plan."
canonical: "https://spot.insure/insurance-faq/fiduciary-liability/what-is-fiduciary-liability-insurance"
page-type: "faq-question"
updated-at: "2026-09-25"
---

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# 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.

## Related Questions

- [What Does Fiduciary Liability Insurance Cover?](https://spot.insure/insurance-faq/fiduciary-liability/what-does-fiduciary-liability-insurance-cover)
- [Who Needs Fiduciary Liability Insurance?](https://spot.insure/insurance-faq/fiduciary-liability/who-needs-fiduciary-liability-insurance)
- [Fiduciary Liability vs. ERISA Bond: What Is the Difference?](https://spot.insure/insurance-faq/fiduciary-liability/fiduciary-liability-vs-erisa-bond)
- [Is Fiduciary Liability Insurance Required?](https://spot.insure/insurance-faq/fiduciary-liability/is-fiduciary-liability-insurance-required)

## Related Coverage

- [Fiduciary liability](https://spot.insure/coverage/fiduciary)

## Sources

1. [Understanding Your Fiduciary Responsibilities Under a Group Health Plan](https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/understanding-your-fiduciary-responsibilities-under-a-group-health-plan). U.S. Department of Labor, Employee Benefits Security Administration; Who Is a Fiduciary?; What Is the Significance of Being a Fiduciary?; Bonding. Accessed 2026-09-25.
2. [29 U.S.C. § 1110: Exculpatory Provisions; Insurance](https://uscode.house.gov/view.xhtml?req=%28title%3A29+section%3A1110+edition%3Aprelim%29). Office of the Law Revision Counsel, U.S. House of Representatives; 29 U.S.C. § 1110(b)(1)–(3). Accessed 2026-09-25.
3. [Fiduciary Liability](https://asset.trvstatic.com/download/assets/fri-3001.pdf/c75b6c8e63ca11ee93454641efede6a9). Travelers Casualty and Surety Company of America; II.D,J–L pp.2–3; II.A p.1; II.V p.5; Header p.1; II.M p.3; III.A.6–8 pp.5–6; II.M.2 p.3; III.B.1 p.6. Accessed 2026-09-25.

More answers: [Fiduciary Liability and ERISA Bonds FAQ](https://spot.insure/insurance-faq/fiduciary-liability).

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