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What types of insurance do financial and investment advisors need?
These policies provide coverage for the most common risks investment advisors and financial planners face.
General liability insurance
General liability insurance provides coverage for common risks facing financial and investment advisors, such as customer injury and slander. Bundle with property insurance for savings in a business owner’s policy.
BEST FOR
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Slip-and-fall accidents
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Damaged customer property
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Libel or slander lawsuits
Errors and omissions insurance
E&O insurance for financial advisors and planners, also known as professional liability insurance, can cover legal expenses related to work performance.
BEST FOR
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Business disputes
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Negligence accusations
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Work errors
Cyber liability insurance
This policy helps investment advisors and financial planners survive data breaches and cyberattacks by helping to pay for recovery expenses and associated costs.
BEST FOR
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Data breach lawsuits
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Breach notification expenses
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Fraud monitoring costs
Workers’ compensation insurance
Required in almost every state for businesses with employees, workers’ comp can help cover medical fees and lost wages for work-related illnesses and injuries.
BEST FOR
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Employee medical expenses
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Missed wages
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Legal costs
How much does insurance for financial and investment advisors cost?
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Several factors will have an impact on insurance costs, including:
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Financial advice, investment advice, and planning services offered
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Business equipment and property
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Revenue
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Location
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Number of employees
Why do financial planners and investment advisors need insurance?
If a mistake or error in judgment leads to a client’s financial loss, a registered investment advisor (RIA) or a tax preparer could face a hefty lawsuit. Financial planner and investment advisor insurance helps protect your decisions, such as management of retirement funds. It also protects against risks faced by any small business, such as injuries and property damage.
