Starkweather & Shepley: Comprehensive E&O Coverage

You buy insurance for ease of mind in the face of a defined threat. And the bigger the threat — leaving your kids in poverty, getting smothered in medical bills, or being forced out of business altogether — the greater the need for protection. And the greater the need for protection, the more the mind feels uneasy in its absence.

Now imagine being in the business of providing retail investment advice — a role that makes you pivotal to your clients’ lives and long-term financial well-being — without errors and omissions insurance. As the uptick in cases that historically follow market downturns shows us, sometimes a client who’s feeling desperate about losses will think you’re uniquely to blame for broad-based outflows, and get their lawyers involved before the market has had a chance to bounce back and fix the problem. Whether the fault really was your or not (and let’s be frank, mistakes do happen), you’re now facing unexpected legal expenditures.

Where E&O insurance generally covers legal costs — including settlements and judgments — advisors should make certain they’re covered for lost fee activities as well as product sales, and it should also cover professional liability linked to training and pro bono endeavors.

To help Chalice members, Chalice presents Starkweather & Shepley, an insurance brokerage that specializes in E&O coverage for small and midsize enterprises. For Chalice members, Starkweather will shave 15% off E&O premiums, fast-track approvals and — on request — provide side-by-side comparisons of different policies to ensure you get great coverage at reasonable prices.

Learn more about Starkweather & Shepley here.