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Understanding Fiduciary Insurance

Fiduciary insurance is a specialized form of coverage designed to protect individuals who manage employee benefit plans against claims of mismanagement or breaches of fiduciary duty. This type of insurance is crucial for businesses and plan administrators as it covers legal expenses, settlements, and judgments that may arise from alleged errors in managing these plans. With the complexities involved in managing benefit plans, fiduciary insurance serves as a vital safety net, ensuring that fiduciaries can perform their duties without the constant fear of legal repercussions.