Areas of Practice
“The little-known secret about the vast majority of insurance for financial advisors is that it is not standardized. Did you know that most insurance is standardized by Verisk through Insurance Services Office (ISO)? Without these ISO standards in place, many call RIA insurance the wild west of insurance. This is a double-edged sword, where you want to be working with an insurance broker who not only understands you, but also how your coverage can be crafted to best fit you.”
Professional Liability insurance
This coverage is often referred to as Errors and Omissions (E&O) or Professional Liability insurance. The most important thing is that this coverage meets your fiduciary liability from clients brought on by the 1940 Investment Advisors Act. Depending on your risk profile and the services you provide, we may want to expand coverage to include financial planning and/or trade error coverage.
Crime Insurance
For most RIAs, the purchase of crime coverage protects against wire fraud risk. Having a strong security process in place is critical. Do you also have a resolution plan should a criminal use social engineering to extract funds from an account?
Directors and officers Insurance
Depending on your size, structure, and risk profile, the need for Directors & Officers (D&O) coverage will vary. If you manage or are a manager to a fund, the implications for this coverage decision are exponentially increased. Understanding where E&O leaves off and D&O picks up is essential.
Erisa Bonds
Knowing when you need a bond and what accounts should be included can feel arduous. Start with knowing if you are a 3(38) or 2(21) advisor to a plan. We can help you simplify the bonding process.
Cyber Insurance
Cyber protection is an increasingly important subject. As you review your compliance requirements under the Gramm-Leach-Billey Act of 1999, you may decide that cyber insurance should be part of that plan. Acquiring coverage that is custom built for you can more effectively mitigate the cost of cyber insurance.
Employment Practices Insurance
As your firm grows and develops, so does the risk of an unfortunate incident with an employee. We can help you determine when it may be the right time to add this coverage.