E&O Insurance. Is it Worth It?
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I'm up for renewal on my E&O policy. I remember what a hard time I had last time finding a company that would accept use of options. I exercise discretion on my clients accounts, and am a big time user of stock options. Yes that can mean unsecured options at times such as naked puts (on stocks we like to own) or naked calls (on broad market indices only. never on stocks).
I've been doing this successfully for my clients for the last six years, and have never run into any problems or issues.
My past policy basically excluded any errors I might have made on option plays, and thus basically only covered my other investing activities. I got it because I wanted to link up with an insurance carrier that required me to carry it and was pressed for time in finding one.
Now that there is no urgency, I am taking my time to find the right type of coverage. Upon reading all the fine print, it seems like all the policies have so many exclusions that they will basically never pay out on active claims. Am I being too skeptical?
Interested in names of good companies for companies that cover derivatives trading, and that have good reputations.