Why Orlando Professional Liability for Financial Planners is Necessary

Have you ever been the victim of a lawsuit? Financial planning lawsuits may result when one party causes losses due to their faulty financial advising. Although many financial planners don’t think they need professional liability or Errors & Omissions (E&O) insurance, there are other advisors that see it as an absolute vital part of their business operations. Financial planners and advisors often times think that they can’t afford this type of insurance, or perhaps they don’t see the point of it or don’t think it will really provide coverage when crunch time comes. Below we will look at a scenario that highlights just why Orlando professional liability for financial planners is absolutely necessary.

This type of insurance is designed to help you when professional mistakes happen, or even when there is a perceived professional mistake that results in a lawsuit. If you make a professional mistake that causes your client to lose money, they will most likely sue you or your financial planning firm. Regardless of whether you actually make a mistake or not, lawsuits take time and money to resolve. Without Orlando professional liability for financial planners, you will be left to handle the legal and financial burdens all on your own.

So let’s say you have a client that changes jobs. He may need to have his 401k rolled over within a specified time frame to avoid stiff penalties, fees or taxes. If your planning firm fails to submit the required paperwork on time, that client may sue you for the fines and penalties he incurs. Not only will Orlando professional liability for financial planners cover these costs, but depending on your level of coverage, your policy can also pay for the legal expenses that arise when defending your lawsuit.

At Newman Crane, we provide Orlando Professional Liability Insurance coverage, as part of our Orlando Business Insurance program. For claims made against financial planners and a number of other professionals as a result of a negligent act, error, or omission in the performance of professional services. Please contact us today for more information at (407) 859-3691. 

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