E&O that matches the work you do
An E&O policy covers the professional services it defines. If you do something outside that definition, a claim about it may not be covered. That applies to discretionary and non-discretionary management, financial planning, and anything done through an affiliate or an outside role.
We compare your client agreements with the policy’s definition of your services, and raise any mismatch with the insurer before you buy. A policy marketed to advisers still has to fit the work you do.
Client claims, stolen money, and hacks
A client who says you gave bad advice is an E&O matter. A wire sent to a fraudster is usually a crime insurance matter. A breach of client data is a cyber matter. These policies overlap less than people expect.
Wire fraud is the one we look at most closely. If someone breaks in and moves money, that is one kind of loss. If an employee is tricked into sending it, that is another, often called social engineering, and it commonly has a smaller limit and conditions attached. We read your cyber and crime policies together and show you which one responds to which scenario.
What counts as a claim, and when
A client complaint, a routine exam, a request for documents, and a formal proceeding are all different events to an insurer. A policy may cover some and not others. Policies also require prompt reporting, and reporting late can put coverage at risk.
Switching insurers is the other place coverage gets lost. A new policy often covers only work done after a set date, called the retroactive date, and generally won’t pick up problems you already knew about. When we move a client to a new insurer, we check:
- Which entities and advisers are insured
- Whether legal fees count against the limit, and who picks the lawyer
- The retroactive date, and whether past work stays covered
- Whether you need consent before correcting an error yourself
The rest of the firm
Your duties to clients are one thing. Your duties to your own employees’ retirement or health plan are another, and those are covered by fiduciary liability insurance, not E&O. We look at both, along with cyber, crime, and employment practices coverage.
To get started, send us your current policies and a description of your services. We’ll tell you what you have, where the gaps are, and what we’d recommend.
Further reading
Background from insurers and regulators. These pages describe their own products and rules, and are not an offer of coverage from Cilantro Risk.