October is, along with many other things, Financial Planning Month, and that means we’re going to discuss what insurance coverages are best suited for a financial planner. If you are looking for ways to save money during this month, or any other, make sure to check out some of these ideas. Now, if you’re a financial planner looking for more information on insurance, then you’ve come to the right place! Because you spend your days giving out financial recommendations, you really need to make sure you have the correct insurance coverage, including professional liability. Let’s get down to it!
First, you really should consider having Professional Liability Insurance added to your commercial policy. This is important as it protects you against alleged negligence and other claims made by your clients. You may have heard this called E&O (errors and omissions) insurance, and will generally cover malpractice or misrepresentation claims. Are you required to have this added coverage? No, not necessarily. Do you need this added coverage? As agents looking out for your best interests, we wouldn’t be doing our job properly if we didn’t recommend this protection to you and your business; so the answer to that is a resounding yes.
The reason is simple: E&O insurance generally covers breach of fiduciary duty, lack of regulatory compliance, and legal coverage. It’s structured so that it will cover you if a mistake is made (it happens to everyone) or is accused of a mistake. When you get this coverage, go over it with a fine-toothed comb with your agent so that you understand every single word of what is, and is not, covered.
In today’s Internet and online world, Cyber Liability is a major buzzword, due to the plethora of things that can happen to and with all of that sensitive information you’re storing on your business computer(s) and/or server. While it’s true that nearly every business and business owner is aware of the risk and taking strong (hopefully) precautions for data protection, adding this insurance to your existing policy will take the worry and stress from your mind should any breach or compromise occur. Even the best of precautions needs an extra “if it happens, we’re protected” layer.
Every business owner should at least have a business owners policy to keep them protected from general liabilities. You’ll have most likely heard this referred to also as general liability insurance, and is one and the same. It’s also one of the most common types of insurance that businesses purchase. No matter whether you’re a sole practitioner or have one or many employees, this is generally considered essential coverage. Are you required by law to have it? Not always. Should I have it? Just as with personal liability, we’d be remiss if we didn’t ensure you understand how unwise it would be to operate your business without it.
Each type of insurance covers something specific—here, you’re covered for property damage, bodily injury, personal injury, property damage, among others. For these reasons, some customers (and even your property landlord) may be unwilling to do business with you if you don’t have this kind of coverage. Anything can happen; no one and no company is immune. Operating without this coverage can leave your business open to serious financial damages if an accident were to occur.
Lastly, what self-respecting business owner with employees doesn’t want to protect said employees in their daily business operation? Certainly no one! This is why it’s so important to have workers compensation, with proper limits and coverage for those in your business doing repetitive tasks, over and over, each and every day. This is critical to your success, as being down one or two employees due to eye strain, neck strain, carpal tunnel, and more, can have a major impact on your bottom line. Workers compensation coverage is so very worth it for you in the long run.
We here at Paradiso Insurance have been at the insurance game for many years, and you can trust our agents to review this coverage with you in detail, and make it easy to understand, so that you can be sure you are fully protecting your livelihood. Reach out to us by clicking the banner below, and let us take care of all the leg work for you.
Are you a financial advisor? Have a financial planning business? We’d love to hear your thoughts in the comments below about the coverages you have, and how it eases your mind to know you have protection!