E&O Insurance
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Hello, long time lurker first time poster.
I am setting up my RIA. To the RIA's who are you using for E&O insurance? I am a small shop >10mm AUM Thx TomEZ Insurance Solutions is the broker I use - I think the policy is actually Hartford or Aon. Pretty good price - pretty slow service.
Jason,
Thanks for chiming in. I am reviewing my E&O also. I was came across EZ Insurance. Much cheaper, but I couldn’t find anyone with a substantial business using them.
The quote I got was being underwritten by CNA.
I would suggest several options:
#1: Check with your RIA Custodian to see if they have any programs/partnerships #2: Financial Advisors Legal Association / www.falegal.com #3: NAIFA Endorsed Professional Liability Program / www.naifainsurance.com #4: Check with any insurance companies in which you are appointed and see if they offer E&O insurance and have an 'RIA Coverage' option available. #5: E&O Insurance via National Ethics Bureau / www.eoforless.com Word to the wise --> Make sure what policy you end up purchasing covers your RIA firm adequately. Be mindful of any policy restrictions or exclusions. Good Luck with your RIA!I am looking at going with Cambridge/Markel.
Anyone using them? Fred, thanks for the post, quality as usual.I am assuming Cambridge Alliance? I used them and I was happy with them. But they dropped me after I started using covered calls. Like Fred said, make sure they will cover everything you do.
That’s interesting, I mentioned covered call writing and the guy says “oh ya we cover that.”
Question on E/O … in researching BDs, I’ve come across an odd dichotomy. Smaller firms tend to offer it at a substantial discount to larger operations. By any indication the firms are similar. The disparity runs from $1600 … to $2400. Obviously eight hundred dollars doesn’t break the bank, but … one item is 50% more than the other.
Could the coverage be that different??
Coverage can be different, but I don’t find that it is. LPL charges $600 quarterly… There is no way a firm with 10,000+ reps should pay that much for the same coverage i get working at a firm 10% of the size.
It’s called markup fellas. The bigger firms have more Vice Presidents to pay. That is why smaller B/Ds are the way to go in my opinion. You get the same products, serivces and support for less “fees”
Have you ever heard of preferred risk E&O insurance? This policy has been designed to purge high risk and unethical agents from the pool. (kind of like a good driver discount) I’m trying to decide if this would be the best policy for me. If you could convince yourself this was the best E&O Insurance policy, for what reasons would you buy it?
I looked and looked … it specifically mentioned investment vehicles like mutual funds, and annuities … but saw no reference to individual investments. Huh?
The E O site I linked has an affiliate program. Get money, get paid!!
Just a suggestion…
I need a insurnce and i don't know what to choose. Does E&O insurance make Let Property Insurance, witch cover a property owner from financial losses connected with their property which they let out.