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Products September 18, 2007
Financial Advisors Legal Association Rolls Out Errors and Omissions Insurance
Financial Advisors Legal Association, a national industry defense and education provider for financial professionals, has announced the rollout of a comprehensive errors and omissions insurance policy designed specifically for individual financial professionals, broker/dealer and registered investment adviser (RIA) firms.
Reported by Rebecca Moore
Financial Advisors Assurance Select covers arbitrated claims initiated by individual clients at $1 million per claim – $2 million in the aggregate, the announcement said. Additional policy benefits include risk management and loss control programs. The policy covers all the products and services represented by financial professionals.
Fees are $2,345 for the first year, then $1,845 per year for subsequent years. Deductibles are two tiered – $2,500 for defense and $10,000 in the event of settlement. Reserves are insured by Lloyds of London syndicates all “A’ rated.
Broker/dealer and registered investment advisory firms are co-insured under the individuals licensed under the firm and pay no premium. However, firms are required to pay a one-time fee of $100 per insured rep to gain the co-insurance benefit.
Errors and omissions insurance is designed for the individual financial professional and is completely portable, even into retirement. The coverage protects against arbitrated claims from individual clients and their heirs.
For more information about Financial Advisors Assurance Select, visit www.falegal.com or contact Robin S. Mills at 800-261-0633.