Glossary

What is Fiduciary Duty?

A legal obligation to act in the best interest of another party, carrying the highest standard of care in law.

Full Definition

Fiduciary duty is the highest legal standard of care, requiring the fiduciary to act solely in the best interest of the beneficiary. In insurance and financial services, fiduciary duties arise in several contexts: ERISA fiduciaries managing employee benefit plans must act prudently, diversify investments, and follow plan documents; corporate directors owe duties of care and loyalty to shareholders; trustees owe fiduciary duties to trust beneficiaries. Breach of fiduciary duty claims can result in personal liability for the fiduciary, making fiduciary liability insurance essential.

Related Terms

D&O Insurance

Self-Insured Retention (SIR)

Explore More

Related Coverage & Services

Directors & Officers (D&O) Insurance

D&O insurance protects corporate directors and officers from personal liability arising from management decisions.

Fiduciary Liability Insurance

Fiduciary liability insurance covers claims against plan fiduciaries for alleged mismanagement of employee benefit plans.

D&O Insurance

Directors & Officers insurance protects corporate leaders from personal liability for decisions made in their role as directors or officers.

Self-Insured Retention (SIR)

The amount of loss the insured must pay before the insurance policy begins to respond, similar to but legally distinct from a deductible.

Business Insurance

Start Here

Have Questions About Fiduciary Duty?

Our advisory team can explain how this concept applies to your specific situation and help you make informed insurance decisions.

Call (800) 755-3469

Discovery

We sit down with you and ask the questions most brokers never do — your assets, your family, your business, your goals.

Strategy

We map your full risk picture and design a coordinated program that strengthens coverage and reduces your total cost of risk.

Execution

We place your program with elite carriers and handle every detail — applications, underwriting, and transitions.

Ongoing Optimization

Your advisor reviews your program as your life evolves — new assets, new ventures, new exposures — so coverage never falls behind.