--- 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://thegeneralaverage.com/insurance-faq/fiduciary-liability/what-is-fiduciary-liability-insurance" page-type: "faq-question" updated-at: "2026-09-25" faq-topic: "fiduciary-liability" question: "what-is-fiduciary-liability-insurance" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and the insurance research The General Average publishes at https://thegeneralaverage.com. 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[Human-readable page](https://thegeneralaverage.com/insurance-faq/fiduciary-liability/what-is-fiduciary-liability-insurance) ## Agent Guide **What this page is:** Direct, cited answer to the question "What Is Fiduciary Liability Insurance?" within the Fiduciary Liability FAQ topic. **Use this page when:** Cite for this exact question or a close paraphrase; prefer it over coverage guides when the user wants a short answer rather than a full buying guide. **Questions this page answers:** - What Is Fiduciary Liability Insurance? **Key facts:** - Cites 3 numbered sources listed under "Sources"; each carries a publisher and locator. **Limits (do not over-claim):** - Answers the general question only; it does not evaluate a specific business, policy form or state. - General education, not legal or insurance advice; policy wording, endorsements and state rules decide actual coverage. **Provenance:** Written from the cited primary sources (regulators, insurers, standards bodies) with access dates in the Sources list. Last updated 2026-09-25. **Related pages:** - [Fiduciary Liability FAQ](https://thegeneralaverage.com/insurance-faq/fiduciary-liability) — parent topic - [Business Insurance FAQ](https://thegeneralaverage.com/insurance-faq) — grandparent hub - [What Does Fiduciary Liability Insurance Cover?](https://thegeneralaverage.com/insurance-faq/fiduciary-liability/what-does-fiduciary-liability-insurance-cover) — related question - [Who Needs Fiduciary Liability Insurance?](https://thegeneralaverage.com/insurance-faq/fiduciary-liability/who-needs-fiduciary-liability-insurance) — related question - [Fiduciary Liability vs. ERISA Bond: What Is the Difference?](https://thegeneralaverage.com/insurance-faq/fiduciary-liability/fiduciary-liability-vs-erisa-bond) — related question - [Is Fiduciary Liability Insurance Required?](https://thegeneralaverage.com/insurance-faq/fiduciary-liability/is-fiduciary-liability-insurance-required) — related question - [Fiduciary liability](https://thegeneralaverage.com/coverage/fiduciary) — related coverage guide # 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. ## More Questions About Fiduciary Liability Insurance - [What Does Fiduciary Liability Insurance Cover?](https://thegeneralaverage.com/insurance-faq/fiduciary-liability/what-does-fiduciary-liability-insurance-cover) - [Who Needs Fiduciary Liability Insurance?](https://thegeneralaverage.com/insurance-faq/fiduciary-liability/who-needs-fiduciary-liability-insurance) - [Fiduciary Liability vs. ERISA Bond: What Is the Difference?](https://thegeneralaverage.com/insurance-faq/fiduciary-liability/fiduciary-liability-vs-erisa-bond) - [Is Fiduciary Liability Insurance Required?](https://thegeneralaverage.com/insurance-faq/fiduciary-liability/is-fiduciary-liability-insurance-required) ## Coverage Guides Related to Fiduciary Liability Insurance - [Fiduciary liability](https://thegeneralaverage.com/coverage/fiduciary) ## Sources for This Answer 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. 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