Financial Planner Insurance 

Home | Business Insurance | Financial Planner Insurance 


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:

CFPs hold confidential client information including social security numbers and payment information.

Cyber liability: Computers and websites that hold confidential client information can be hacked and stolen.

Crime liability: 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.

Your clients count on your advice. 

Professional liability: 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.

Protect your business.

Property exposure: 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.

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.

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.

Automobile liability exposure: 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.

Workers compensation exposure: 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:

Other certified financial planner insurance coverage to consider:

How to get a free CFP insurance quote

We offer a complimentary financial planner insurance consultation. InsuranceHub will take the time to understand your business, clients and specific industry-related liabilities and challenges. Contact us today at (877) 341-5728 to schedule your free, no strings attached, CFP insurance consultation today.

FEW-0630AO (11/2018)