Financial Planner Insurance
Protect what you have worked so hard to build.
We can help you get your financial planner insurance.
You have worked hard to build your financial planning reputation and spent years to become a Certified Financial Planner (CFP). You are rightly concerned about protecting yourself from liability when providing investment advice and preparing financial plans for people and their businesses because, after all, your clients rely on your advice. As a registered investment adviser you have a fiduciary duty to care for their investments.
The market is unpredictable.
If a client loses money, whether it is your fault or not, they may sue you personally.
Financial markets can go up and down, and a client could lose their life savings overnight. This may cause an unhappy customer to call their lawyer, and, on top of that, no CFP is perfect. Mistakes happen, and even if it is not your fault, clients can become unhappy with your services. This is why the SEC says that a CFP can be sued for fraud and negligence in performance of duties.
Do you have Certified Financial Planner insurance?
Lawsuits are time consuming and stressful; a professional liability insurance policy can relieve some of these potential burdens. Our advisors here at InsuranceHub have experience with the following:
- Cash Flow Management
- Retirement Planning
- Investment Planning
- Financial Risk Management
- Insurance Planning
- Tax Planning
- Estate Planning
- Business Succession Planning (for business owners)
Types of exposure that Certified Financial Planners and Investment Advisors need protection from:
Cyber liability exposure
CFPs hold confidential client information including social security numbers and payment information.
Computers and websites that hold confidential client information can be hacked and stolen.
Professional liability exposure
Your clients count on your advice.
The wrong advice or a bad investment could lead to a lawsuit. Make sure you have your licenses and certification up to date. Ensure that all employees giving advice are properly certified. Document all advice given.
Inland marine exposures
Do you travel to and from your investment clients' homes or offices carrying your laptop, deposits, valuable papers, and records? First you will need inland marine coverage. Second be sure to make duplicate copies of all important information and keep them stored off site.
Employee dishonesty in regards to social security numbers, credit card information, trade secrets and other confidential information. Wise CFPs take the time to do background checks before hiring and permitting any employee on the clients' premises.
Premises liability exposure
Do you have clients that come to see you at your office location? Pay attention to cleaning snow and ice from the sidewalks. Also, watch slippery wet floors in your entryway. Off-site exposure includes having all employees submit to background checks and having a policy/procedure manual explaining how employees are to conduct themselves off site.
Do you and your employees use vehicles during the performance of their work? Here are few suggestions. First, do a motor vehicle record check on all employees before allowing them to drive company vehicles. Is there procedure/policy book for all drivers of company vehicles? Be sure to get a commercial auto policy to protect your business.
Protect your business.
What would happen if all of your records, computers, and books were destroyed in a fire? All information should be kept in fireproof cabinets. Invest in cloud backup technology.
Workers compensation exposures
Do you or your employees perform repetitive tasks? Learn how to reduce eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries. Invest in ergonomically designed workstations. Invest in a workers' comp insurance plan that will protect your employees and your business interests.
Here are the minimum recommended financial planner insurance coverages:
- Business owners policy
- Business Income with Extra Expense
- Business Personal Property
- Employee Dishonesty
- Money and Securities
- Accounts Receivable
- Valuable Papers and Records
- General Liability
- Employee Benefits Liability
- Professional Liability
- Errors and omissions
- Commercial Umbrella Liability
- Hired and Nonownership Auto Liability
- Workers Compensation
- Cyber insurance