What type of insurance protects trustees from accusations of wrongful acts in fund management?

Fiduciary liability insurance is designed specifically to protect those who manage or oversee employee benefit plans and trusts from claims that they have breached their fiduciary duties. In fund management, trustees have significant responsibilities, and if they are accused of making decisions that result in financial loss to the trust or its beneficiaries, they can face legal action. This type of insurance helps cover legal fees, settlements, or judgments that arise from such accusations.

In contrast, legal liability insurance generally covers a broader scope of liability claims but does not focus solely on fiduciary aspects. General liability insurance is geared towards protecting businesses from various forms of liability except those specifically related to fiduciary duties or fund management. Professional liability insurance, while it does protect professionals against claims of negligence or errors in the services they provide, is not tailored specifically for the fiduciary responsibilities of trustees in fund management scenarios. Therefore, fiduciary liability insurance is the most appropriate coverage for protecting trustees in this context.