As a Financial Services Coach and Trainer for over 20 years, I cannot place too much emphasis on the importance of Professional Liability Coverage. I need you to understand that professional liability insurance is a concern and should be looked at as critical to growing and protecting a thriving Financial Services practice. We give you an overview and resources on “Errors and Omissions” Insurance.

Protection Against Things That Can Go Bump In The Night!
You have heard of malpractice lawsuit against doctors and lawyers. Well, it should not take you by surprise that Financial Services Professionals may be taken to court for malpractices as well. Financial Services Professionals need professional liability insurance for the same reason that doctors and lawyer do i.e. protection against malpractice lawsuits.

 

 If the Financial Services Professional causes financial injury to a consumer or client based on services within their area of expertise, they must be held accountable.

 

Financial Services Professionals are expected to have extensive technical knowledge or training in their particular area of expertise. They are also expected to perform the services for which they were hired, according to the standards of conduct in their profession. If they are found negligent in deploying financial advice or services that is expected of them

 

Within the expected skillsets, they can be held responsible in a court of law for any harm they cause to another person or business. You need to beware that often the charges are frequently overblown or just not true. The Financial Services Professional must be defended or stand the chance to lose their practices. There may be significant expense in defending against even a false claim.

Errors and Omissions
The type of insurance that blanket the Financial Services Professional is called “Errors and Omissions” Insurance. My advice is simply this. “Errors and Omissions” Insurance is not an option. You must have it. The companies you will represent will feel the same way.

 

Typical Coverages
Coverages may range from one million dollars and go up to five million dollars. Your deductible may range from one thousand dollars through $25,000. The deductible is your out of pocket cost. Some Financial Services Professionals may have to carry higher coverage limits. Take the time to determine what your professional needs are for the scope of your practice! Do it today! Here are a few carriers for starters: