Why Investment Firms Have Fiduciary Liability Insurance

Axis Insurance Agency

Working in the financial investment sector can be tremendously rewarding for both you and your clients. Of course, if you offer your financial investment knowledge to others, you probably owe a fiduciary duty to anyone who chooses to rely on it. Purchasing fiduciary liability insurance from a reputable vendor, such as Axis Insurance Agency, is probably a good way to avoid costly legal damages associated with the breach of fiduciary duty.

Fiduciary Duty

When you manage your client’s money, you owe them a fiduciary duty. That is, you must exercise due diligence, avoid conflicts of interest, and not behave in an irresponsible or negligent way, among other responsibilities. Breaching this duty, of course, can lead to costly legal damages.

Insurance Coverage

The money management sector is fraught with potential legal pitfalls. In the financial investment industry, fiduciary liability insurance typically protects an advisor from the following types of legal liability:

  • Conflicts of interest
  • Negligent money management
  • Irresponsible investments
  • Failure to file reports and disclosures

Instead of leaving your financial wellbeing and professional success to chance, you may benefit from a fiduciary liability insurance policy if you offer investment advice to clients. A policy from a top vendor, such as Axis Insurance Agency, may give you the peace of mind you need to give confident, valuable advice.