Claims for negligence or business tort are comprised of four elements: duty, breach, causation, and damages. The defendant owed the plaintiff a duty, but he or she breached that duty, causing the plaintiff to suffer damages. The duty of a fiduciary is essentially the highest form of an obligation owed between parties. It entails assuming care for a serious and trusted responsibility. Claims for breach of fiduciary duty are complex, and often difficult to litigate. Here are some fiduciary liability insurance claim examples:
- A fiduciary can be liable for poor advisement when he or she fails to properly advise clients of important information, or when he or she knowingly gives false or misleading information, and a client suffers damages as a result.
- A claim based on missed calculations when a fiduciary negligently fails to accurately calculate the value of an asset, fund, or expense. Source: https://www.axisins.com/.
- Fiduciary responsibility for managing a fund can be liable for failing to properly oversee its management and any serious acts of omission that result in financial damages to the fund’s beneficiaries.
When your company takes on the duties of a fiduciary, it requires the highest degree of care and responsibility. Protect your company and the services that it provides to its clients by exploring insurance coverage options specifically geared towards fiduciary liability.