One of our strongest and most loyal clientele groups include the following:
Registered Investment Advisors
Investment Advisory Reps/Investment Bankers
Investment Management Consultants
Hedge Funds and Mutual Funds
Most of our programs focus on the small financial advisors/planners and RIAs who have seen an underserved insurance market in past few decades. Yet the exposures have been steadily growing with increasingly volatile markets as well as the more litigious culture we live in.
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 small 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
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