CalSurance, a national insurance sales, service and support organization comprising many diverse and specialized programs, has launched a specialized errors and omissions program for broker-dealers with 75 or fewer registered representatives. CalSurance and Quanta Specialty Lines Insurance Company have teamed up to offer this program.
“E&O coverage for smaller-sized broker-dealers and their sales forces has been very difficult to find until today,” said Nancy Evans, vice president of programs, CalSurance. “To make the program even more rewarding, we typically will be able to turn around quotes within 10 business days rather than the 30- to 45-day waiting period that broker-dealers and registered reps of this size are accustomed to.”
The E&O program provides protection against claims arising out of acts, errors or omissions in the rendering of professional services by a broker-dealer, its registered representatives, RIA’s or insurance agency. It is designed as a shared-risk arrangement written as a master policy with an aggregate limit of liability encompassing all risks.
Evans said the program offers up to $1 million in limits of liability and has deductibles starting at $25,000 for broker-dealers and $5,000 for registered representatives, with a $20,000 minimum premium.
Other select features of the program include duty to defend civil proceedings, supervisory coverage for the broker-dealer that extends to terminated, retired and disabled registered representatives, and coverage for libel, slander and defamation.
In addition, CalSurance can also offer the Fidelity Bond coverage that every broker-dealer is required to carry. Written through Quanta, the basic policy includes coverage for fidelity, on premises, in transit, forgery/alteration, securities forgery and counterfeit currency. Computer fraud and extortion are available for an additional charge. By offering both the E&O and the Bond, CalSurance provides broker-dealers with one-stop shopping for these two critical coverage needs.
For an application for this program, visit the CalSurance Web site at www.calsurance.com.
Was this article valuable?
Here are more articles you may enjoy.