Our company has expertise providing insurance coverage for the following professionals:
- Financial Planners
- Registered Investment Advisors
- Investment Advisory Reps/Investment Bankers
- Asset Managers
- Investment Management Consultants
- Divorce Planners
- Broker/Dealers
- Hedge Funds and Mutual Funds
Professional liability is needed for protection
In every market downturn or recession we have seen the arbitration cases rise, which was true following the burst of the “.com” bubble in late 1990s and early 2000s. The actual complaints can be brought through the NASD, the SEC, the American Arbitration Association, the NYSE, the SROs and civil court system, just to name few.
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The main exposures of financial advisors, RIAs and financial planners lie in their ability to choose their clients appropriately, document their objectives and goals, select appropriate investment strategies, execute them without trading errors and disclose all the risks and benefits of the investment strategy to their clients.
In addition, the “social inflation” has played its role in the new exposures facing today’s financial advisors’ community. Today, we believe the plaintiff’s bar association is collecting and sharing information about who was sued, where, when, what was the outcome, who was their insurer and was there a settlement. The plaintiff’s bar also pursues and tests new theories of liability and damages, which in turn will become legal precedent. As the costs of defending the claims become larger, so will the verdicts and indemnity paid by our financial advisors.
We feel very strongly that the insurance programs we can offer our clients will protect them in almost every aspect of their practice.
The brief highlights include:
- Claims made and reported
- Trading error coverage / cost of corrections
- Coverage for life, health and accident sales available
- Coverage for product sales as a registered representative available
- Duty to defend coverage available
- Access to pre-mediation legal counsel at no costs offered by the carriers on selected programs
- Expertise and Experience of the most successful insurance carriers in defending advisors
- Tax preparation coverage available
- Covers discretionary and non-discretionary asset management
- Independent contractor coverage available
- Divorce planner coverage available
- Minimum premium: $1,000
- Limits available: as low as $250,000 and up to $1,000,000; limits above $1,000,000 are available
- Minimum deductible: usually $1,000
- All carriers rated A- or higher by A. M. Best