The Short Answer

In Florida, an “agent” (attorney-in-fact) under a power of attorney can generally purchase insurance, including a liability or “errors and omissions” type policy, if the agent has authority to do so and the policy is structured correctly. But insurance is not a substitute for the agent’s fiduciary duties, and it will not protect an agent from liability for dishonest, reckless, or bad-faith conduct.

What Florida Law Says

Florida treats a power of attorney agent as a fiduciary and imposes duties like acting in good faith, within the scope of authority, and in the principal’s best interest. If an agent violates Florida’s Power of Attorney Act, the agent can be personally liable to restore losses and may also have to repay attorney’s fees and costs that were paid from the principal’s funds to defend the agent.

The Statute

The primary law governing this issue is Fla. Stat. § 709.2117.

This statute establishes that an agent who violates Florida’s power of attorney law is liable to the principal (or successors) to restore the value of the principal’s property and to reimburse certain attorney’s fees and costs paid from the principal’s funds in defense of the agent’s actions.

Why You Should Speak with an Attorney

Even if an insurance carrier is willing to sell an “E&O” or fiduciary liability policy, whether it actually protects the agent in a real dispute depends heavily on the facts, the policy language, and whether the purchase itself was authorized and appropriate. Legal outcomes often depend on:

• Strict Duties (and personal exposure): Florida law makes the agent a fiduciary and requires good faith and acting within the granted authority. See Fla. Stat. § 709.2114.
• Coverage gaps and exclusions: Many policies exclude intentional misconduct, self-dealing, or “dishonest acts”—the same kinds of conduct Florida will not allow an agent to be excused for. Florida also limits exculpation provisions for bad-faith or reckless conduct. See Fla. Stat. § 709.2115.
• Who pays and who benefits: Using the principal’s money to buy a policy that primarily protects the agent can trigger conflict-of-interest questions under Florida fiduciary standards, especially if other family members later challenge the agent’s spending.

Trying to “solve” liability risk with an insurance purchase—without confirming authority under the POA and without aligning the policy with Florida fiduciary rules—can create a second legal problem on top of the first.

If you want more background on POA authority and disputes, you may find these helpful: financial powers under a Florida durable POA and rights when someone else holds POA.

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Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.