Insurance For Financial Planners

Insurance For Financial Planners Ontario

What You Need to Know About Financial Planners Insurance

A financial planner is someone who works with clients to help them plan and reach long-term financial goals. They do this by assisting clients with managing their money. Financial planners have a thorough understanding of investing, budgeting and taxes, as well as personal financing. They can help their clients with financial matters like saving money for retirement, a college fund, or investing in new business ventures.

Some financial planners choose to focus on more narrow areas of financial planning, such as retirement planning. Others choose to work with a broad focus, offering financial planning advice in the following areas:

  • Savings
  • Investments
  • Insurance
  • Retirement savings
  • College savings
  • Taxes
  • Estate planning

While financial planners are assisting clients in managing their finances, they also need to protect their own. One way to do so is by having financial planners insurance to protect them from potential lawsuits due to claims of negligence or oversights. Having a business insurance policy for financial planners is crucial to protecting not only your clients but also yourself and your business.

Insurance Coverage Options

The key to ensuring you have the best financial planning insurance is building your policy to include exactly what your business needs in terms of coverage. You deserve to know that your business and livelihood are protected, and here at Insurance Hero, we can help you do just that.

Here at Insurance Hero, we make finding financial planners insurance in Ontario simple and painless to save you time and money. This is because we believe that people should never end up overpaying for their insurance. That’s why our team of knowledgeable insurance heroes works diligently to find you the insurance you need at the most affordable rate.

What is financial planners insurance?

Financial planners insurance is an insurance policy that is specifically tailored to financial planners to protect them and their businesses from related industry risks, such as damages, losses, negligence, injuries and lawsuits.

What insurance do I need as a financial planner?

Errors and Omissions (E&O) Insurance

Errors and omissions insurance, also known as professional liability insurance, is absolutely essential for any person offering a service. It can be the most important coverage for you to have. You could find yourself facing a lawsuit from a dissatisfied client at any point. Even a simple error or oversight could end up in a significant financial loss for your clients. In turn, your client may try to sue you to recoup their losses. 

These are just some examples of why all financial planners in Ontario are required to obtain a specific amount of E&O coverage. This policy protects you against claims of misconduct, negligence, failure to deliver a service, inadequate work and more. Professional liability typically covers:

  • Errors, mistakes and oversights
  • Failure to meet deadlines
  • Failure to deliver your product/service as advertised
  • Professional negligence
  • Failure to meet a standard of care
  • Breach of contract

Commercial Property Insurance

Commercial property insurance protects your office and the contents inside (e.g., equipment, inventory, etc.) by covering the financial loss from such perils as:

  • Property damage due to natural disasters, flood, fire, vandalism or theft.
  • Property damage or theft of electronics, equipment, company documents or
  • employees’ personal belongings.
  • Inventory theft by employees.

Commercial property insurance can also include business interruption, which protects your business should you be unable to work due to an illness or injury and have to shut it down temporarily. This helps offset ongoing costs from income losses, such as bills, employee wages, etc.

Cyber Liability Insurance

Cyber and privacy liability insurance protects your business by covering damages and legal claims if your client’s personal information is leaked or stolen due to a data breach or theft. As client information is regularly saved online these days, and many financial planners have moved to hosting virtual meetings, this has become an essential insurance policy for financial planners to have.

General Liability Insurance

Some financial planners will also acquire their financial planning certification and start their own businesses. General liability insurance protects you, your business (and your employees) from legal liability against third-party bodily injury or property damage claims that occurred while a client was at your office. It covers the costs of medical bills, legal fees, and repairs or replacements. This insurance policy also protects you against advertising and reputational injuries (e.g., slander, libel, copyright infringement).

Crime and Fraud Insurance

In today’s age of technology, crime is more than just stolen office equipment. Nowadays, financial planners also have to be diligent against modern methods of crime, including electric fraud. Crime and fraud insurance offers broad coverage for crime-related losses that are not generally covered by liability policies. And, in the event that you are a victim of stolen office equipment, including your computer containing all of your client’s information, you will be protected. 

Auto Insurance – Business Use

Some insurance advisors travel to their clients’ houses instead of having a brick-and-mortar office. These advisors will need to let their insurance provider know they will be using their vehicle for business purposes. You can likely add this to your personal auto insurance policy.

Tools and Equipment Coverage

Adding this coverage to your auto insurance policy will help cover your computer and supplies in the event they are lost, stolen or damaged.

What happens if I don’t have financial planner insurance?

You can’t always predict the right investment opportunities. As such, bad investment advice or an unexpected market crash that leads to money loss could significantly affect your relationship with a client. Without financial planner insurance, you could quickly and unexpectedly find yourself presented with an expensive lawsuit by a disgruntled client. 

Not only that, but financial planners can also be at-risk for all kinds of perils, such as third-party property damage and bodily injuries, when they have clients come in to meet with them at their office. Plus, their business itself has its own risks they need to take care of as well, such as damages to their office (e.g., theft, vandalism, fire) or a data breach that steals their clients’ personal information. By not having financial planner insurance, financial planners are at risk of losing their businesses to financial ruin.

Is financial planners insurance mandatory?

Generally, financial planners are not required to have insurance. However, any time a person is working with the public, it is essential to be prepared. The financial market is constantly up and down. Should one of your clients lose money or decide they are unhappy with your services, you could suddenly find yourself facing a lawsuit. At a minimum, having professional liability insurance can protect you from the financial burden of court and settlement fees.

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There are several variables that help determine the type of insurance that’s best for you. Luckily, as someone who sells insurance, you know the importance of finding a good broker. Let Insurance Hero help manage your risk and insurance cost by conducting a full commercial insurance policy review to determine what kind of coverage is best for you!

For reliable, affordable financial planners insurance in Ontario, please request a quote online or call us at 1-855-777-4376. Our team of insurance heroes is happy to answer any questions you have!