One of our strongest and most loyal clientele groups include the following:
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.
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:
For more information, please do not hesitate to call one of our experienced staff members.
