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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 Tom
EZ Insurance Solutions is the broker I use - I think the policy is actually Hartford or Aon. Pretty good price - pretty slow service.
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.