Different E&O Insurance
Dec 8, 2009 6:43 pm
Hi All -
I am in the final witching hour before I leave a wirehouse for my own firm (clearing through Kovack Securities in Fla). My attorney brought up a point which I was not aware of - there are two types of E&O insurance:
Term E&O: Insurance me for X period.
Claims Made E&O: Insurance for when a claim is made (I get sued in Jan 2010 for events in 2009).
My issue is: how do I determine what I have? I can't exactly go in and ask my manager or his underling? (tip my hand).
My thoughts -- call HR and say I was reading registered rep about a broker who go sued after he switched firms and found out he had the "wrong insuance". This could still tip my hand if the person is semi-conscious / has half a brian.
Any ideas? Firm is MS.
Ready to Move
Why don't you call some E&O providers or a securities attorney. When you figure out which you need, just buy it on the outside to be safe. After you make the move drop the insurance if you don't need it.