E&O for Broker-Dealers

Nuts & Bolts: CalSurance launched a specialized errors and omissions program for broker-dealers with 75 or fewer registered representatives. CalSurance and Quanta Specialty Lines Ins. Co. have teamed up to offer this program. 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. Other 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. CalSurance can also offer the Fidelity Bond coverage all broker-dealers are 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.

Dollars: The program offers up to $1 million in limits of liability; deductibles start at $25,000 for broker-dealers and $5,000 for registered representatives, with a $20,000 minimum premium.

Carrier: Quanta Specialty Lines Ins. Co., rated “A” by A.M. Best, nonadmitted.

States Available: Alaska, Arizona, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Montana, Nebraska, New York, Ohio, Oregon, South Dakota, Texas, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

Contact: Mary Serafino, (800) 280-7250 ext. 340 or mserafino@calsurance.com. Becky Harris, (800) 280-7250 ext. 440 or bharris@calsurance.com

Topics Agencies Professional Liability