EXPLAIN WHY FIDUCIARY LIABILITY INSURANCE IS IMPORTANT TO HAVE.

Fiduciary liability insurance is also known as management liability insurance. The purpose of this type of insurance is to protect businesses and its employees against claims resulting from a breach in fiduciary duties. The policy only covers the insured company and the direct employees, not contractors or third-party advisors. The liability insurance protects claims such as: Error in plans, improper enrollment, or terminations with the result of the loss or incorrect benefits Poor or negligent advice about how to invest the clients funds Making risky investments Wrongful denial or improper change in benefits without the clients approval