Professional Liability Insurance for Financial Advisors

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Financial advisors, financial planners, investment advisors or consultants offer a significant service. Giving advice to clients about their money and sometimes even their life puts you at high risk for potential lawsuits. While the career choice you made may be fulfilling, and you have had success so far, it is imperative to purchase a Professional Liability insurance policy for financial advisors. This Errors and Omissions policy will protect you and your business from financial loss.

What Are Common Professional Liability Risks That Financial Advisors Face?

As a financial advisor, your risk for claims is relatively high. Because you are giving financial advice to your clients, if they lose money it will be your fault, regardless of whether it indeed is. You are human, and mistakes happen, and unfortunately, some clients may not be happy no matter what you do. The Professional Liability insurance for Financial Advisors policy will shield you from losing thousands of dollars due to one of these claims arising.

What Does Professional Liability Insurance for Financial Advisors Cover and What Are the Key Policy Benefits?

CoverWallet works with several insurance companies, and each will be different. However, all of them will include the following standard coverages:

  • Breach of fiduciary duty - If a client determines that you have not acted in their best interest, they could bring a lawsuit against you.
  • Lack of regulatory compliance - Perhaps you accidentally did something that was against a law or regulation for financial advisors. Whether on purpose or not, you could be held liable.
  • Defense costs - If you are found not guilty, you will still have to pay for attorney fees and court costs. Because this can become tens of thousands of dollars, a Professional Liability Insurance for Financial Advisors policy is the best way to have this covered.

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How Much Does Professional Liability Insurance for Financial Advisors Cost?

On average, a financial advisor can plan to pay around $1,500 annually. Of course, if your financial firm has employees, this can cause the cost to be higher. Also, your annual revenue, assets managed, and prior claims history can impact the premium. CoverWallet can help you keep these costs low by working with our insurance companies to bundle all of your insurance needs together.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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