Why you need insurance for investment advisors

If the going gets tough, we hang tough with you.

Our professional liability insurance program is recommended by top industry associations. For one thing, it’s portable – you can keep your policy even if you change broker-dealer or life company affiliations. Secondly, as it is not uncommon for practitioners to gradually move their practice from fees and commissions to fee-only, your policy can be structured to cover both fee activities and product sales coverage. We call this coverage tailoring.

Some of the other major differences you will find in a our investment advisor policy:

Strong defense provision
“Right and duty” to defend

  • This is the most protective option available to policyholders
  • We have a contractual obligation to defend you against covered wrongful acts

Incident trigger
Critical for early intervention in a potential claim

  • A “written demand” is not required to trigger loss control
  • Policyholders have access to our risk management and loss prevention hotline. This hotline allows policyholders to discuss potential claim scenarios with an attorney. We will pay up to $10,000 (without triggering the deductible) in investigative costs if the policyholder calls us before a claim is filed.

Broad coverage for your firm’s business activities

  • Professional services rendered or advice given to others by the insured for a fee, remuneration, or other consideration
  • Activities as a financial planner, registered representative, registered investment advisor, pension consultant, investment consultant, investment manager, or life insurance agent
  • Automatic coverage for acts as a fiduciary
    • Management of clients’ retirement plans
    • Personal liability protection from the Pension Protection Act of 2006

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