Toronto – Small Business Week in Canada (October 19-25) is a perfect time for Canada�s financial advisors and planners to set aside as an annual review of professional liability coverage, suggests the Advocis Protective Association (APA).
“Financial advisors and planner are very good at ensuring that their clients are well covered for financial eventualities � and emergencies,” said Randy McGlynn, Chair of the APA�s Board of Directors. “But sometimes they overlook the financial protection of their own practices. And E&O insurance is one of the most important business decisions an advisor can make can make to protect themselves, their business and even their family and future”
Advisors and planners should carefully look at their book of business and ask themselves some key questions. By how much has their book of business changed over the last year? Does the existing e&o coverage reflect this increased � or decreased � risk? What risk management practices are in place? Do these need to be reviewed or revised? Are client files neat, organized and understandable because improper documentation is the single leading cause of successful E&O claims.
“An advisor or planner also really needs to understand how the type of small business they operate impacts their need for E&O coverage,” added Mr. McGlynn. “For example, a small business, if it has staff or other advisors, may need corporate coverage in addition to individual coverage. But a sole practitioner, insured through the APA at least, may already have personal corporate coverage included in their individual coverage. So, it all depends on a number of factors.”
The APA has a unique partnership with its program underwriter, Liberty International Underwriters. The A-rated Liberty, along with the plan broker Willis, is committed to help the APA build a self-funded plan, proven to be the most viable model to provide stable and sustainable e&o insurance for the financial advisor and planner community.
The Advocis Protective Association (APA) is an industry-leading professional liability insurance provider offering plan participants errors and omissions insurance specifically tailored to professional financial advisors and planners. Designed by advisors and planners for advisors and planners, the APA�s products meet the needs of the ever-evolving business environment by ensuring stability for plan members against the vagaries of worldwide financial markets. www.advocis.ca
