Fiduciary Liability insurance is designed for startups that create, manage, and administer employee benefit plans.
If current or former employees claim their assets weren’t invested properly or they received misleading plan advice, they may sue whoever is responsible. Fiduciary coverage can protect your startup in the event of such a lawsuit.
Fiduciary Liability coverage often goes hand in hand with Employee Benefits Liability coverage, which covers mistakes and oversights in benefits administration, like failing to enroll an employee in health insurance. Both help protect your startup once you introduce employee benefits.