Errors & Omissions Insurance Won’t Protect Your Financial Career

Financial Advisors and Financial Service Professionals are mandated to carry Errors & Omissions Insurance, but unfortunately this will not protect your career or credibility should something go wrong. A highly capable and qualified financial advisor I know was recently investigated due to the fraudulent actions of one of her clients. Even though it was later discovered that she was in no way connected to her client’s crime, the process for proving her innocense cost her the career she spent years building. Her licenses were suspended for nearly four months while an investigation was conducted by the SEC, NASD and her broker/dealer. During this investigation, she was not permitted to contact her clients. Yet, those conducting the investigation did contact every single one of her clients, asking some very detailed information. Immediately, more than 75% of her clients jumped ship. Her Errors & Omissions Insurance could not protect her, but there is a solution.

I recently met a financial advisor and sales manager for a Fortune 100 company who described an amazing service — Pre-Paid Legal Services, Inc. (USA) and Pre-Paid Legal Care of Canada Corporation (Canada), something I had heard of before but was rather skeptical of. He mentioned how he recommends that every single advisor and agent in his company MUST carry PPL’s services as a means to properly protect their business and career. During a recent investigation in his office, this sales manager had an agent who was notified that a complaint had been filed. Fortunately, the agent did keep very good records and files. But, because he also had a PPL membership he was able to have one of the best law firms in the state at his disposal to review and advise him of his legal rights. It was quickly discovered that the agent had followed proper procedures but that his client had declined a disability insurance policy only later to have filed a complaint that no such offer was given after the client injured himself on the job. PPL’s law firm quickly stepped in and wrote a letter to all parties concerned. It was estimated that the low-cost legal insurance monthly fee of $26 this advisor paid saved him $1,000 in retainer fees plus $600 for the letter drafted and mailed to all parties, as well as possibly saving him his career and credibility from further investigation and suspension.

I told this story to a Vice President from a leading Canadian national financial advising and insurance provider. The entire company is considering this service for all their advisors. It seems to be a service worth checking out.

Liability Insurance Is a Professional’s Security!

Errors and omissions or more popularly called E & O Insurance is an imperative business concept that knows no boundaries. This kind of liability cover is not only a must or sometimes mandatory but also assists in ensuring carefree business practices that are necessary in today’s competitive and demanding world. The professional people offering products and services are generally deeply involved in ensuring high quality marketable goods and sometimes neglect or overlook the important aspect of liability that crosses their paths in cases of inadvertent errors and omissions. It is always desirable that every individual entrepreneur and both small and large companies think in terms of slashing their risks through adequate and proper E & O insurance to assure continuity in business and legal cover in case of defaults that may or may not be preordained or contemplated. Agencies handling this extremely important section of the business world employ qualified and experiences personnel who are experts in their own field of dealing with errors and omission cases on a regular basis.

Professionals are a breed apart in all walks of our lives and with modern business techniques and facilities practice their trade with great acumen and aplomb. This is true all over the world and with increasing interaction with the business discipline these professionals become loaded with excessive work of a licensed or certified nature. With such an environment it is necessary to into professional liability insurance that can provide cover in acts of errors and omissions or assure the professional that business be comfortably progressed since legal agencies can be hired to handle any eventualities. Professionals are generally unaware of the legal angles of their business and therefore expert groups help in maintaining ethical supervision over the use of products and services offered by the specialists. Every business person or corporate entity must ensure adequate and legal insurance cover for acts of errors and omissions so that their profession is not compromised. There are various types of professional services insurances available in the market and one must be extremely careful in choosing the right cover that makes the business more secure.

Obtaining Temporary Auto Insurance

We have a mutually helpful arrangement with our two friends who live in another country. Every year we go away for two weeks and they have agreed to spend those two weeks in our home in exchange for looking after our pets. They get free accommodation and a holiday. We get peace of mind in knowing that our pets are safe.

We also make our motor car available for their use whilst they are staying in our home. This means that we have had to arrange car insurance for them, so that they can legally drive the vehicle. At first I thought that it would be a lot of red tape to go through because they have Spanish driving licenses. But nothing could be further from the truth. The process was a simple one and was quickly dealt with over the telephone. It probably helped that I used my usual car insurance broker. This is useful because they have a record of my previous transactions and are usually very helpful. All we had to provide were full details of the proposed drivers, and a summary of their driving history. I was a little concerned about this because one of the drivers is under 24 years old and I know that car insurance for young can be expensive; but it didn’t turn out to be a great issue.

The insurance cost was reasonable and was worth the effort. We got a temporary car insurance certificate that covered both of our friends. This certificate lasted for up to 30 days. This gave us peace of mind because we obviously know that it is a legal requirement to have any driver of our motor car legally insured to drive the car on a public road. So having organised the insurance details, all that was left for us to do was to enjoy our time in the sun and have fun.

When we got back home, after the formalities of thanking our friends and making a fuss of our pets, we checked that everything was in order with the vehicle before contacting the insurance brokers to cancel the policy. This last step is not strictly necessary because the insurance cover could be left to run for the duration of the 30 days: But this tidied up all the loose ends for use until the next holidays.