What does financial services professional liability insurance cover?
EasyCover’s Professional Liability Insurance for financial services offers coverage for legal expenses and damages in the event you are sued as a result of professional negligence or mistakes that result in financial loss for your client or a third party. Whether or not the claim is unfounded, expensive legal proceedings to defend yourself are necessary. Your Professional Liability Insurance would protect you.
EasyCover offers critical protection needed by financial service professionals in a way that is affordable, quick and easy
Financial services Professional Liability Insurance covers your legal expenses. This includes your defense costs as well as any judgement and settlement awards, subject to policy limits and conditions.
You have three coverage options with EasyCover Canada:
Your coverage limit is the maximum amount that will be paid out over the 12-month policy period, regardless of the number of claims and includes associated costs of litigation.
Your optimum level of coverage depends on: your contract requirements, the number and size of your clients, the type of clients you have and their activities, the overall value of the contracts, and the potential costs of a legal claim that might be made against you.
Deductible amounts range from $250 to $1,500, depending on your revenue. The deductible is a portion of your claim that you are responsible for and you pay a deductible for each claim. For example, if your deductible is $1,000 and you have two claims within one policy term, you would pay $2,000 in deductibles for that term
Professional Liability Insurance for financial services only covers liability for financial or reputational damage associated with providing your service or advice. It won’t cover third party bodily injury or property damage – you’ll need General Liability Insurance for those types of claims. You also won’t be covered for any criminal acts or intentional dishonesty or fraud.
You must inform your insurer of any circumstances that could result in a lawsuit. For example, if your client communicates to you that they believe you made a mistake, you should contact your insurer just in case it escalates to litigation.