Wide definition of covered activities and who is protected
- Professional Services means services you perform for a client or professional association in your capacity as an appropriately licensed, accredited or certified investment adviser or registered representative.
Professional Services as an Investment Adviser shall not include:
- Any services rendered during the period of any suspension or revocation of the Insured’s certification, liscensure, accreditation appointment or other right to practice as a Registered Representative, Registered Investment Adviser, Financial Adviser, Financial Consultant, and Life insurance Agent; or
- Investment Adviser means an individual who is in the business of providing:
- Financial Planning Services as a Financial Planner; or,
- Investment Management Services as A Registered Investment Adviser or,
- Life Insurance Agent; or,
- Registered Representative; or
- Services as a “3(38)” adviser as defined by ERISA section 402(c)(3); or
- providing general financial education courses and seminar including, but not limited, courses in support of Section 404(c) of Employee Retirement Income Security Act of 1974 (“ERISA”).
Coverage for acts as a fiduciary when performing ERISA type plans
Coverage for Fiduciary Liability provided by endorsement which states:
Covered Act also means a Fiduciary Act by you, during the Policy Period and after the retroactive date stated in the Declarations.
Fiduciary Act means any actual or alleged:
- Act, error or omission solely in the Administration of a Plan; or
- Professional Services as a fiduciary for others for a fee; or
- breach of the responsibilities, obligations or duties imposed upon any of you in capacity as a fiduciary of any Plan other than a Plan organized for the benefit of you or your employees by: (i) ERISA; (ii) HIPAA; or (iii) the common statutory law of the United States of America or any other jurisdiction anywhere in the world
- other matter claimed against the of the you solely because of your service as a fiduciary of any Plan; or
- act, error or omission solely in the Administration of a Plan.
The Endorsement also expands the definition of who is covered as being:
- Any person who is, was, or hereafter becomes your partner, principal, officer, director, member, or employee, but only while acting as a fiduciary or duly elected or appointed trustee, director or officer of any Plan, other than a Plan organized for the benefit of you or your employees
It also extends to the definition of damage that includes:
- Damages shall include the 5% or less, or 20% or less, civil penalties imposed upon an Insured under 502 (i) or (l), respectively, of ERISA.
Provides premium discounts for a variety of professional designations and risk management practices
Premium Discounts are available for the following risk management features:
Risk Management Characteristics:
- Internal Compliance Officer
- New client screening procedures/Client Relations
- Internal Management/Training/Controls
- Good internal audit by SEC or outside consultant
- Written Formal Policies and Procedures/Formal Risk
- Risk management training program for new hires
and for various best practice features of your firm:
- Firm Characteristics
- Firm Structure, History and Financial Condition
- Severity Exposure/Transaction or Case Size
- Professional Qualifications or designations
- Assets Under Management Ration
Competitive pricing (in comparison) with other generalists insurers of this class
AdvisersGold™ is specifically designed for well-managed specialists wealth consultants and rates have been adjusted to recognize the preferred exposure presented. Consequently, AdvisersGold™ can offer premiums at costs superior to generalist professional liability insurers. Premium discounts are also available for a variety of positive risk management features and membership of professional association.