Insurance for Financial Services Firms
Nothing is as simple as it used to be. Court decisions and new regulations are rendering financial services firms increasingly vulnerable to lawsuits and tighter regulatory scrutiny. Even the most well-managed and cautious firms are finding themselves exposed.
In today’s complicated legal and regulatory environment, financial companies have special liability exposures that may not be covered by their existing general liability insurance policy. Professional liability lawsuits can be triggered by not meeting client expectations, misstating results or even violating federal regulations. Many different laws continue to create significant accountability for advisers along these lines. The proliferation of federal and state laws governing employment practices, combined with evolving case law, also makes claims by employees more common and more costly. Even routine business decisions can lead to liability for a firm and its management. A wide range of actions can be brought by any number of parties—not only by clients but also by shareholders, employees and regulators. The financial well-being of a firm and its management is at risk.
In the past, a financial adviser wanting to insure such diverse risks had to purchase several different policies and hope that a claim would not fall into any potential gaps in coverage.
The Swingle Collins & Associates team has a strong understanding of exactly what financial services firms need to protect their company. Call us, if we can be of assistance to you.
