Investment Advisors and RIA firms need E&O Insurance to protect against litigation brought against their business by clients. It safeguards against any errors or omissions you make (or are accused of making) while selling and servicing covered products. Some state insurance departments mandate E&O protection, as do some custodians.
Our base coverage protects you in the event of a claim or lawsuit resulting from acts as a fee-based advisor providing non-discretionary investment advisory services. Discretionary investment advisory services coverage is only provided for the purchase or sale of specific products/investments. For all coverage details, view our policy information page.
Why NAPA
Our benefits
When you purchase NAPA Premier RIA E&O Insurance, you become a NAPA member, granting you instant access to a curated collection of benefits ranging from business services, insurance products for you and your family, savings and discounts and so much more.
Since 1989, the NAPA has assisted professionals like you with exceptional insurance coverage and benefits. We live up to our service claims: our first-class, licensed customer advocates are just a call or chat away to lend a hand in ensuring that your experience with NAPA is exceptional.
Our coverage
NAPA Premier RIA E&O Insurance is always backed by an "A" rated or better insurance carrier, so you can trust that you're protected in the event of a claim. We strive for affordability without making sacrifices to our coverage or services.
With NAPA, you can trust that your coverage has an advantage over the other policies out there. Affordable, upfront pricing, no hidden fees, U.S.-based customer service, comprehensive coverage options ...the list goes on.
*Deductible lowers annually for insureds who retain continuous coverage under NAPA Premier, with reductions starting in year 2 and stopping at year 5 of continuous coverage. Please refer to the policy for complete coverage details.
The NAPA Premier Difference
Coverage Benefits
Deductibles & Liability Limits
All NAPA Premier policies are underwritten by an “A” rated, admitted carrier
$3,500 starting deductible for claims arising from fee-based investment advisory activities
Prior acts coverage back to the first date of continuous coverage
This deductible reduces based on continuous coverage with NAPA Premier with the following schedule: Year 1: $3,500, Year 2: $3,000, Year 3: $2,500, Year 4: $2,000, Year 5 and beyond: $1,500
Vicarious liability is provided for an entity owned or controlled by an individual insured representative who is listed on the policy as an individual insured
$1,000 starting deductible for claims arising from fixed life, health, accident and disability insurance and fixed and indexed annuities
Extended reporting period (ERP) available for those retiring or leaving the industry
This deductible reduces based on continuous coverage with NAPA Premier with the following schedule: Year 1: $1,000, Year 2: $800, Year 3: $600, Year 4: $400, Year 5 and beyond: $200
Coverage provides defense costs and disciplinary hearing costs. Defense costs reduce the limits of liability and are subject to the deductible/retention. The policy does not cover punitive damages. Refer to the policy form for the definition of defense costs and punitive damages.
$1,000 starting deductible for all other covered claims (e.g., variable products, mutual funds, Series 6 & 7)
This deductible reduces based on continuous coverage with NAPA Premier with the following schedule: Year 1: $5,000, Year 2: $4,500, Year 3: $3,000, Year 4: $2,000, Year 5 and beyond: $1,000
Coverage extends to clerical and administrative staff. For NAPA Premier's RIA Firms & Corporations E&O Insurance, coverage extends to employed IARs and independent contractors while acting on behalf of the covered firm.
For limits of liability, insureds can choose from the following options:
$1 million per claim / $1 million annual aggregate
$1 million per claim / $3 million annual aggregate
$2 million per claim / $2 million annual aggregate
Coverage includes NAPA Member Benefits, with access to savings on office supplies, travel, shipping and more.
Preferred-rate programs available for CLU® & ChFC® designations, CFP® designation, FPA members and other associations and custodians
If you're an individual investment advisor representative, our Individual IARs & Advisors E&O Insurance is right for you. If you have a firm, LLC or corporation with multiple advisors, our RIA Firms & Corporations E&O Insurance is the best option. Though pricing is consistent between these two options and based on prior calendar year gross revenue, you'll need to choose the product that fits your business best to ensure you're adequately protected.
