This type of insurance policy protects fiduciaries of employee benefit plans from damages due to alleged ‘wrongful acts’ or breaches of professional duty. Fiduciary liability insurance covers companies sponsoring employee benefit plans as well. Every company, and every fiduciary managing benefit plan should consider their potential liability, including defense costs, as part of their risk management program. Fidelity protects clients from theft by employees. This type of is very close to traditional insurance – in this case it protects the employer from employee dishonesty. Fidelity is often purchased by businesses employing high risk employees.