E&O Insurance for RIAs

Coverage Details for $1,797
(Insurance premium $1,641 and NEA Membership Fee $156)

Provides protection for your liability for wrongful acts solely in the rendering or failing to render professional services. This includes professional services relating to the sale, attempted sale or servicing of variable annuities, variable life insurance (that requires a securities license) and mutual funds that are registered with the Securities Exchange Commission, if required, through a Broker/Dealer that is a member of the Financial Industry Regulatory Authority, Investment Advisory Services, securities (other than variable annuities, variable life insurance and mutual funds), life insurance, accident and health insurance, or managed health care organization contracts (that does not require a securities license), disability income insurance, indexed/fixed annuities, Medicare Advantage or Medicare Supplemental Insurance.

$1M/Each Claim
$1M/Aggregate

+ Privacy Protection Endorsement (additional premium, if purchased)

Coverage Details for $1,961
(Insurance premium $1,805 and NEA Membership Fee $156)

Provides protection for your liability for wrongful acts solely in the rendering or failing to render professional services. This includes professional services relating to the sale, attempted sale or servicing of variable annuities, variable life insurance (that requires a securities license) and mutual funds that are registered with the Securities Exchange Commission, if required, through a Broker/Dealer that is a member of the Financial Industry Regulatory Authority, Investment Advisory Services, securities (other than variable annuities, variable life insurance and mutual funds), life insurance, accident and health insurance, or managed health care organization contracts (that does not require a securities license), disability income insurance, indexed/fixed annuities, Medicare Advantage or Medicare Supplemental Insurance.

$1M/Each Claim
$2M/Aggregate

+ Privacy Protection Endorsement (additional premium, if purchased)

Coverage Details for $2,044
(Insurance premium $1,888 and NEA Membership Fee $156)

Provides protection for your liability for wrongful acts solely in the rendering or failing to render professional services. This includes professional services relating to the sale, attempted sale or servicing of variable annuities, variable life insurance (that requires a securities license) and mutual funds that are registered with the Securities Exchange Commission, if required, through a Broker/Dealer that is a member of the Financial Industry Regulatory Authority, Investment Advisory Services, securities (other than variable annuities, variable life insurance and mutual funds), life insurance, accident and health insurance, or managed health care organization contracts (that does not require a securities license), disability income insurance, indexed/fixed annuities, Medicare Advantage or Medicare Supplemental Insurance.

$1M/Each Claim
$3M/Aggregate

+ Privacy Protection Endorsement (additional premium, if purchased)

NEA Member Fee Disclosure: The NEA member fee covers your membership in the National Ethics Association (NEA). Please note that the NEA membership fee is not part of the insurance transaction. You must be a member of the NEA and be able to successfully complete the application for coverage in order to be eligible for the insurance offered through the NEA. If you wish to purchase this insurance coverage, you may apply for the insurance by completing the application, as noted above. You will then pay the insurance premium and receive your certificate of insurance.

Premium Payment: annual or monthly payment options are available.  Initial payments are processed immediately; subsequent monthly payments are processed on the third business day of each month. The down payment for the monthly payment option includes the first month premium and a $5 processing fee; subsequent monthly payments also include a $5 processing fee.

The premium is earned on the first of each month. Earned premium is nonrefundable.

Pay with credit card or electronic funds transfer (EFT).

Overview

This policy provides protection for your liability for wrongful acts solely in rendering or failing to render professional services. This includes the following:

1. The sale, attempted sale or servicing of variable annuities, variable life insurance (that requires a securities license) and mutual funds that are registered with the Securities Exchange Commission, if required, through a Broker/Dealer that is a member of the Financial Industry Regulatory Authority; but only if such coverage is purchased;
2. Investment Advisory Services
3. The sale or attempted sale or servicing of securities (other than variable annuities, variable life insurance and mutual funds) approved by and offered on the securities platform of the Broker/Dealer with whom the Registered Investment Advisor Investment Advisor Representative has a contract;
4. Administration of Employee Benefit Plans;
5. Financial planning activities in conjunction with services described in paragraphs 1. through 4. of this definition, whether or not a separate fee is charged;
6. Services performed as a Fiduciary Advisor as defined in the Pension Protection Act of 2006, and any amendment thereof; or
7. Only the following services as a natural person Agent or General Agent, to the extent they are provided in the course and scope of the Insured’s business as an Agent or General Agent and such Agent or General Agent has the appropriate license in both the Client’s resident state or jurisdiction and the state or jurisdiction in which the business is conducted but only if such coverage is purchased and shown on Certificate of Insurance:
   1. The sale, attempted sale or servicing of life insurance, accident and health insurance, or managed health care organization contracts (that does not require a securities license);
   2. The sale, attempted sale or servicing of disability income insurance;
   3. The sale, attempted sale or servicing of indexed/fixed annuities;
   4. The sale, attempted sale or servicing of Medicare Advantage or Medicare Supplemental Insurance;
   5. Financial planning activities in conjunction with services described in paragraphs 1. through 4. of this definition, whether or not a separate fee is charged;
   6. The supervision, management and training of an Agent by a General Agent with respect to activities otherwise covered by the Master Policy.

Limits of Liability

Limits of liability for $1,797 Plan

$1,000,000 each claim
$1,000,000 in the aggregate
$15,000,000 total Master Policy aggregate (for all non-New York Insureds)

Limits of liability for $1,961 Plan

$1,000,000 each claim
$2,000,000 in the aggregate
$15,000,000 total Master Policy aggregate (for all non-New York Insureds)

Limits of liability for $2,044 Plan

$1,000,000 each claim
$3,000,000 in the aggregate
$15,000,000 total Master Policy aggregate (for all non-New York Insureds)

Privacy Protection Endorsement Sublimits (if purchased):

$100,000 aggregate for all loss per insured
$100,000 each claim and in the aggregate for Privacy Injury Liability
$100,000 each claim and in the aggregate for Privacy Regulation Proceedings
$25,000 each claim for Privacy Event Expenses

Wire Transfer Claim Endorsement Sublimits

$150,000 per Wire Transfer Claim/$150,000 per Insured

Cost of Corrections Coverage

$5,000 per Cost of Corrections Claim
$250,000 Policy Aggregate limit

Pre-Claim Assistance Coverage

$15,000 sublimit per insured

Deductibles (Retentions):

$5,000 each Claim for Securities (other than Mutual Funds/Variable Annuities/Variable Insurance), Fiduciary Advisor

*This retention reduces to $4,000 for insureds who have participated continuously in the program for three years.

$5,000 each Claim for the Investment Advisory Services for Year 1&2; $4,000 each Claim for Investment Advisory Services for Year 3+; (Must remain in the program continuously with no gaps to receive reduction).

$5,000 each Claim for Variable Annuities/Variable Insurance (that requires a securities license) and Mutual Funds sold through any Broker/Dealer

$500 each Claim for Life, Accident, Health Insurance and Long Term Care Products through any Insurance Company (that does not require a securities license)

$2,500 each Claim for Indexed Annuities/Fixed Annuities

$500 each Cost of Corrections Claim

$2,500 each Claim for Disability Income Insurance

$5,000 Each Claim for the Privacy Protection Endorsement (if purchased)

$5,000 Each Claim for Wire Transfer

Endorsements (included)

Amend Definition of Investment Advisor Representative

This endorsement is for those insureds who continue to purchase Errors & Omissions coverage even though they are no longer in the industry and whose licensing may not be current due to this.

Agents/Registered Representatives will be eligible to enroll for Errors & Omissions coverage for mutual funds/variable annuities even if they are no longer registered to sell such products (but had been in the past).

Additional Features Include:

• Competitive rates
• Prior Acts Coverage going back to the first continuous E&O policy subject to policy provisions
• Defense costs reduce the limit of liability and are subject to the retention. Punitive damages are not covered by the policy. Refer to the policy form for the definition of defense costs and punitive damages.
• Coverage is provided for the named insured’s administrative, clerical, and support staff, but only while acting on behalf of the named insured; and for any corporation, partnership, or other business entity that is owned or controlled by the named insured, but only for the covered acts of the named insured. Refer to the policy form for the definition of an insured.
• Individual Certificate Period
• A one year extended reporting period at no additional charge subject to policy provisions
• Quick and easy online enrollment with certificate available online upon satisfactory confirmation of premium payment
• Quick and easy online certificate renewal
• Important: This is a claims made and reported policy. Claims must be submitted immediately in writing to the insurer. Coverage only applies to claims first made during the policy period. Claims must be reported during the policy period; or, during an extended reporting period (ERP). Prior acts are covered back to the first day of continuous E&O coverage. Please refer to the policy form for claim reporting provisions and definition of a claim, prior acts definition, and ERP details.
• Military Activation Coverage Included

Important State Amendatory Endorsements

Plan Eligibility

All applicants:

• NEA membership
• 10 preferred risk questions
• Privacy Protection Endorsement (if purchased):
• 5 preferred risk questions

Underwritten by:

Your coverage is secured by Continental Casualty Company, a member company of CNA Financial and is rated A (Excellent) by A.M. Best.

Disclaimer: One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. “CNA” is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the “CNA” service mark in connection with insurance underwriting and claims activities. Copyright © 2019 CNA. All rights reserved.

Refer to the policy form for additional definitions, terms, and conditions. Please contact us with any questions or concerns; you can also visit our Frequently Asked Questions for more information.

A.M. Best rating chart and other disclosures PDF

RIA Policy Specimen