Errors and Omissions Insurance for Registered Investment Advisors

CITA’s Errors and Omissions Insurance for Registered Investment Advisors program delivers affordable coverage without sacrificing quality protection.

Errors and Omissions Insurance for Registered Investment Advisors program highlights include:

CONVENIENT

  • Premiums as low as $1,250
  • Instant no-obligation quote
  • Bind coverage and print certificate online instantly!*
  • Flexible payment options (pay by credit card or debit-to-checking)
  • Installment plan options
  • Broad eligibility
  • No additional premium or reporting required when hiring new investment advisor representatives or staff

QUALITY PROTECTION

  • RIA firm level coverage (includes all investment advisor representatives)
  • Multiple limit options
  • Individual firm limits (no sharing limits with other firms)
  • Life insurance agent coverage included at no additional cost
  • Low $5,000 deductible
  • Cost of corrections/trade error coverage included
  • Coverage for prior acts as a registered representative option (offers protection for representatives transitioning from a registered representative to an independent RIA)

*For eligible applicants, coverage can be bound instantly!


Complete your Errors & Omissions Insurance for Registered Investment Advisors application online!

Operating your Investment Advisory Firm without E&O Coverage? Things to Consider when Self Insuring…

  • The average cost of defending a matter in litigation is $31,500
  • The threat of litigation can never be completely eliminated, only mitigated.
  • 3,714 cases were filed with FINRA in 2013 and 3,538 cases were filed through November of 2014.
  • The largest volume of allegations seen in FINRA disputes are Breach of Fiduciary Duty and Negligence, which are common for Investment Advisory Firms.

3 Simple Steps to Protect your RIA Business

Do you protect your business assets as thoroughly as you protect your clients? Use these three simple steps to start protecting your business today:

Document, document, document!
Documentation is key to protecting your business activities. While it’s easy to document “important” business decisions, many seemingly trivial conversations with clients often remain undocumented. However, any interaction with a client may become relevant should a claim arise. As a result, any business discussed by phone must be documented. The subject matter covered in a conversation must have a paper trail.

Review current policies to confirm all your business activities are covered.
Have you recently reviewed your E&O insurance policy to see if the coverage you carry matches the business you conduct? Many RIAs never take the time to review their current E&O policy, while others simply renew coverage assuming the policy is the same as the previous year. This is not always the case. Do you know if your current E&O policy covers all the advisory services you provide? Do you know that some E&O programs do not include prior acts coverage? Do you know that Registered Representatives who get E&O insurance through their broker/dealers may not be covered for additional fee based business? These are the questions you should be asking yourself when reviewing or selecting an E&O policy. Choosing the wrong coverage for your business could leave you vulnerable should a claim arise. Remember to look for a comprehensive E&O program that provides the key coverages your business needs.

Select an E&O program that’s right for your RIA business.
Whether your E&O coverage is expiring or you simply do not carry coverage, it’s time to reevaluate your plan to keep your business protected. Do your research, review your options, and select an E&O program that carries the coverages you need. Look for a policy that covers the services you offer, has a carrier you can trust, and competitive premiums you can afford.