If you are a financial advisor, you have a lot of work to do. This job requires that you have an extensive amount of knowledge in many different areas which have to do with finances. Financial advisors should continue to learn since they are expected to be able to give the most up to date information that is available.
What Does It Cover?
If you work advising people about their finances, this job can be extremely tricky. The economy seems to be ever changing, and you need to make sure that you give people the right information. Whenever you are covered by professional liability insurance, you do not have to worry about losing your shirt if you make a mistake.
There is a certain duty of care that professionals and experts must show towards clients. You must always have the best interests of your clients in mind. If you give faulty information, or are accused of giving fault information, you may have a professional negligence claim filed against you.
If you have a professional negligence claim filed against you, your insurance should cover this. You need to look over your policy to make sure what is listed to ensure that you are covered in this instance. Your policy should be thoroughly checked before you choose any policy and start to pay the premiums.
Whenever you speak with the agent that is selling the insurance to you, have a list of questions that you can draw off of. You may be able to think of plenty of questions before you go, but oftentimes, it is difficult to remember everything that you wanted to ask whenever you are having your meeting. You should ask questions about any situations that may be excluded from the list of problems that are covered. Most policies will have a section that lists situations that they will not pay for.
Why Do I Need Insurance?
If you are a professional that advises people about their finances, it is very dangerous to do this without having professional liability insurance. It is not difficult to miscalculate and give faulty information which your client could act upon and lose money. We are all just humans, but if you make an error, you want to have insurance that will soften the blow.
Even if you believe that you are fully up to date on the latest trends and techniques, you could have accidentally missed something. Many people make the mistake of having financial planning as their second job. If you have two jobs, it is difficult to be an expert in any field. Make sure that you focus all of your learning power towards one job so that you do not make any mistakes that could cost you a lot of money. Being sued without being insured could wipe out your entire business.
Having peace of mind is priceless. Whenever you have this type of insurance, you will be able to give advice confidently. Gaining your clients trust and creating a good reputation is very important and you can do this by making consistent, good decisions.
Whenever you look for the professional liability insurance for financial advisors, you do not have to settle for the first choice the comes along. If you want to get a good product, you may have to shop around a little bit. Make sure that you get the policy that you want, but you also need to make sure that you get a price that you can afford. Comparing the different policies and companies will allow you to get the best of the best.