What does Fidelity Insurance primarily cover?

Fidelity Insurance primarily covers losses caused by the dishonesty of fiduciaries. This type of insurance is designed to protect organizations from financial losses that result when fiduciaries, such as trustees or employees with financial responsibilities, engage in fraudulent activities or acts of dishonesty, such as theft or embezzlement.

The focus on protecting organizations against the risks posed by dishonest acts underscores the importance of trust and integrity in fiduciary roles. By providing compensation for these specific losses, Fidelity Insurance helps ensure that organizations can recover from financial setbacks that are typically outside their control.

The other options refer to different aspects of financial operations and responsibilities. While administrative errors by fiduciaries can lead to financial losses, Fidelity Insurance is not designed for covering those errors. Liabilities incurred during plan administration fall under different types of liability insurance, and impairments related to financial investments pertain to investment risks rather than fidelity-related losses. Each of these areas represents distinct risks that would require different forms of coverage outside of Fidelity Insurance.