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Sep 1, 2009 8:11 pm

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  
Sep 2, 2009 4:16 am

Bueller?? Bueller??

Sep 2, 2009 4:45 am

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

Sep 2, 2009 4:54 am


Sep 2, 2009 6:36 pm


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.

Sep 2, 2009 7:13 pm

I would suggest several options:

  #1:  Check with your RIA Custodian to see if they have any programs/partnerships #2:  Financial Advisors Legal Association / #3:  NAIFA Endorsed Professional Liability Program / #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 /   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!
Sep 2, 2009 7:58 pm

I am looking at going with Cambridge/Markel.

Anyone using them?   Fred, thanks for the post, quality as usual.
Sep 2, 2009 8:08 pm

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.

Sep 2, 2009 9:14 pm

That’s interesting, I mentioned covered call writing and the guy says “oh ya we cover that.”

Sep 3, 2009 11:08 pm

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??

Sep 3, 2009 11:14 pm

Lock - coverage can be pretty different.

Sep 3, 2009 11:44 pm

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.

Sep 9, 2009 1:58 am

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”

Sep 9, 2009 2:00 am

very good point.

Sep 9, 2009 11:25 pm

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? 

Sep 10, 2009 12:02 am

I looked and looked … it specifically mentioned investment vehicles like mutual funds, and annuities … but saw no reference to individual investments. Huh?

Sep 10, 2009 4:38 am

Very well put, mrclutch

Sep 11, 2009 5:37 pm

The E O site I linked has an affiliate program. Get money, get paid!!
Just a suggestion…

Sep 4, 2010 9:43 am

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.