In an ever more complex and litigious field, plan advisors face a multitude of risks, including cyber exposure—and ERISA opens you up to a host of additional exposures and requirements. And yet, countless errors & omissions (E&O) products on the market today do not address these exposures.
A new program developed by Lockton Affinity in partnership with the American Retirement Association (parent association of the National Association of Plan Advisors) fills the gaps in many of today’s E&O policies, covering certain legal fees, judgments or settlements resulting from claims and litigation brought against you for the services you provided.
Many advisors rely on group E&O offered through their broker dealer, wire house, or the large corporate RIA they represent. Some plan advisors form their own RIA outside of their BD relationship, which may or may not be covered by the group policy they are required to maintain. Some online programs or group programs include specific ERISA fiduciary exclusions, which means it is critical for a retirement advisor to review their coverage to be sure all of their provided services are indeed covered and the structure of the coverage is designed to trigger for all of your provided services.
Distinct Differences
And unlike most insurance offerings available in the current marketplace, the program includes Professional Liability, industry-leading cyber-liability and fiduciary coverage to meet ERISA standards and ensure that any fiduciary duties performed by you as an advisor are also covered.
While many of the commonly used online insurance programs either exclude ERISA professional services or lack clear definitions or policy terms to incorporate all exposures ERISA law brings, this policy was specifically developed to provide coverage for the retirement plan advisor. It incorporates feedback from Groom Law Group to ensure the necessary ERISA terms were included—and it’s the only one in the market that provides a panel of ERISA law firms to defend the retirement advisor in the event of a claim—including Groom, the Wagner Law Group and Trucker Huss as the approved defense panel. The program also incorporates regulatory coverage due to the increased presence and scrutiny of the SEC/DOL and other regulatory bodies.
You can find out more today at https://locktonaffinityadvisor.com/plan-advisor/.
