AKA E&O Insurance for Financial Planners and Investment Managers
There are basically four types of E&O in this business:
• E&O for Broker Dealers.
• E&O for Registered Investment Advisors (RIAs).
• E&O for selling insurance company products.
• E&O for selling written financial plans for fees.
All financial advisors should have E&O insurance.
You should find a company that covers all of the things your practice does. Then make sure their policy:
• Has a high insurance rating.
• Has "Duty To Defend," not just the "Right To Defend," so they will have to defend you in court.
• Is not a "Claims Made" policy.
• Get one based on "Incident" so coverage will kick in as soon as there is an incident (so you don’t have to wait until there is a claim).
• Covers "Discretion" even if you only have Limited Discretion.
• Also, getting "Tail Coverage" is a good idea.
Perform an Internet search for more information, to find insurance carriers that sell it, and to look up the meanings of basic terms.
This is all this website has to do with E&O. We don't sell it, nor do we have, or keep up with anything to do with it.
