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1. Not portable
Insurance through your Broker/Dealer
(B/D) is tied directly to the services you provide for that B/D.
If you move to another B/D, or move on to provide other
services, you can not take your insurance coverage with you.
2.
Prior acts coverage
may end when you leave the Broker/Dealer
In addition to not being portable,
you will typically lose your prior acts coverage (coverage for previous
work that you performed) when you move to another B/D.
3. Limits may be eroded
by other Registered Representatives claims
The aggregate limit on a B/D policy
is typically shared by all of their Registered Reps. Therefore,
claims against other Representatives may reduce your available coverage.
4. May not cover other
services outside of the Broker/Dealer
A typical B/D policy will only
provide coverage for services that you provide through that B/D
5.
May exclude RIA
activities
The B/D policy may not cover all of
the services that you provide and typically will not provide coverage
for RIA services.
6. May exclude entity
coverage
A B/D policy is intended to provide
coverage for the individual representative of the B/D. Coverage
may not be provide for you entity.
7. May limit best options as a fiduciary
Not all policies are the same and
with increasing scrutiny on fiduciary responsibilities, you want to make
sure your policy provides coverage for your role as a "fiduciary".
8. No ability to amend
coverage as a certificate holder
As a certificate holder of your B/D's
coverage, you do not have the ability to amend coverage as necessary to
your specific needs.
NAPLIA offers stand alone professional liability
insurance for all of the following risks:
For information: Please
contact us
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Investment Advisors Applications & Forms