Fiduciary liability insurance protects an organization's fiduciaries (such as directors, officers, and trustees) against claims made by employees or other stakeholders for alleged breaches of fiduciary duty. This type of insurance is particularly important for organizations that have employee stock ownership plans (ESOPs), as ESOP fiduciaries have a unique set of responsibilities and potential liabilities.
Glossary
Fiduciary Liability Insurance
Definition
Fiduciary liability insurance protects an organization's fiduciaries (such as directors, officers, and trustees) against claims made by employees or other stakeholders for alleged breaches of fiduciary duty.