Home | Our Firm | FAQs | Contact  

Critical coverages for Investment Advisers

Some insurance policies are highly standardized and offer generic coverage. Workers' compensation is the best example. All carriers use the same policy form and add an endorsement or two. Other policies, such as professional liability, may look similar to the untrained eye, but are very different. Working with these policies takes training and experience to avoid falling into the commodity trap. Here is where CIB Insurance Services stands out. It takes an expert insurance consultant or adviser, one whose employees have earned the industry's top credentials, to examine coverage carefully and make recommendations based on what's right for you, not what pays the highest commission.

Professional Liability more on this
Also referred to as Errors & Omissions, or E&O, insurance, this is the backbone of an investment advisers' insurance program and the area where we focus most of our efforts. Claims against investment advisers are costly to defend, even when the adviser is found not liable. While professional liability insurance is not inexpensive, it can mean the difference between survival and bankruptcy in the event you're sued. And poorly written professional liability insurance is a waste of money, unless you just need a certificate of insurance for an important client.
Directors & Officers Liability more on this
The only insurance policy specifically designed to cover the personal liability of the board and management team for its non-delegable responsibility to shareholders, employees, the federal and state government, and other third parties.
Employment Practices Liability more on this
protects the firm and its employees against claims for sexual harassment, discrimination, wrongful termination and similar workplace torts.
Cyber Risk more on this
Almost all states have passed laws requiring disclosure of security breaches. The cost of compliance with these statutes and regulations can be huge. Being sued by clients for failing to properly safeguard protected personal information can be even more costly. None of your firm's other insurance policies cover these claims...which are on the rise. Cyber Risk exposures and claims will only increase. Make sure you have coverage you can count on.
Fiduciary Liability more on this
This one's confusing to many investment advisers since your entire business subjects you to "fiduciary liability". The insurance industry uses this term to refer to your exposure from sponsoring retirement benefit plans or welfare benefit plans to your employees. Your professional liability and D&O policies exclude these claims so you need to address this exposure separately.
ERISA Bonds more on this
We probably don't have to tell you this, but these bonds don't protect your firm's assets at all. You have to carry an ERISA bond to comply with DOL requirements.  Make sure you have broad protection at the lowest possible rates. CIB Insurance Services has an exclusive arrangement with a top-rated carrier that will match or beat your current rates.