Deep Dive: The XYPN Group E&O Plan: What 800+ Firms Share

The XYPN group E&O plan covers 800+ firms under one $20M policy. Alternative asset coverage drops 75% from individual policies. Other firms' claims drain your protection. Growing past two advisors? No coverage for the third. Know these gaps before choosing group insurance over individual protection.

Your E&O insurance protects your firm when clients sue. The XYPN group plan covers over 800 advisory firms under one policy. That fact alone should make you pause.

The Good Parts

Markel underwrites the XYPN policy. Markel has been underwriting RIAs for a long time. They know RIA risks. They pay claims. You want them on your side.

The coverage flexes with your needs. $1,000,000 E&O limit. You add D&O if you want it. Tax prep coverage? Available. CDFA coverage? They have it. Cyber and social engineering coverage? Add it. Trade error protection comes standard.

The price looks attractive. Group buying power drives costs down. Young firms see the savings and sign up.

The Hidden Risks

Alternative Assets Get Crushed

You manage crypto for clients? Private equity? Real estate funds? Your coverage drops 75%.

Individual policies give you $1,000,000 for alternative asset claims. The XYPN plan caps you at $250,000 per claim, $500,000 total. BPI has handled alternative investment claims over $1,000,000. One bad private placement wipes out your coverage.

800 Firms Share One Pot

The XYPN plan has $20,000,000 total. Sounds like plenty until you divide by 800+ firms. That's $25,000 per firm if spread evenly (the average claim is $400k-$600k).

Here's what keeps you up at night: other firms file claims before you need coverage. The money runs out. You face a lawsuit with zero protection. Your individual assets become the target. XYPN's group plan isn't alone in this - it goes for every group plan.

Two Advisors Maximum

Growing your firm? The XYPN website states: "Our policy covers up to two advisors per firm." Your third advisor works naked. No coverage. Full liability.

Individual Policies Win

Your own policy protects only you. Nobody else touches your limit. You manage alternative investments without massive gaps. You hire your third, fourth, or tenth advisor without worry.

You control your coverage. You pick your limits. You adjust as you grow. No other firm's problems become yours.

Check Your Coverage Now

Three questions reveal if you need better protection:

Do you manage any alternative investments?
Do you have more than two advisors?
Does sharing coverage with 800 firms concern you?

One "yes" means you need options. The XYPN plan works for some firms. But you need to know what you're risking.

BPI specializes in RIA insurance. We've seen what happens when coverage fails. Schedule a call to review your coverage. Know your gaps before a client finds them.