You owe it to yourself to obtain the right coverage. Many cases addressed advisors and firms with insufficient compliance programs in place.Get a Free Consultation
There is a good chance that even if you have E&O insurance, it may not be the type or in the amount you really need.
A surprising number of state-filed RIAs firms have no inkling that the fine print of their coverage actually excludes state-filed firms. Being an expert in financial matters does not mean that you are also accomplished in the insurance coverage realm. For that matter, many insurance agents fail to obtain the requisite E&O coverage they need.
RIA Registrar sponsors a program for E&O insurance for RIAs on our maintenance program. The E&O coverage offered through us is appropriate for state and SEC-filed RIA firms. Despite all your best efforts, a claim may be lodged against you. Keep yourself and your firm safe with E&O insurance.
Make a mistake or do something wrong in a transaction, and you may well have an error or omission case on your hands. A case against an RIA might allege you failed to comply with some regulatory requirement, that you made a mistake in advising your clientele, or you breached your fiduciary duty. For insurance agents, clients who feel you misrepresented something in their coverage, or failed to adequately advise them about their policy may later seek damages from you.