RESOURCES

Frequently asked questions

We can help answer your Lockton Affinity Advisor insurance questions. Click a topic below to see frequently asked questions and their answers.

Questions
about our firm

Questions about
insurance for RIAs

Questions about
insurance for life agents

Questions about your
current policy

Still have questions?

If your question is not answered here, let us know.

Questions
about our firm

Lockton Affinity Advisor offers specialized coverages for firms and professionals in the FI industry, such as RIAs and life agents, including:

  • Errors & Omissions
  • Cyber Liability
  • Crime / Fidelity Bonds
  • Directors & Officers
  • ERISA Bonds Insurance
  • Financial Institutions Bonds
  • BOP with General Liability
  • Employment Practices Liability
  • Workers’ Compensation

Yes, we specialize in commercial insurance solutions for a wide variety of financial professionals, including:

  • State & SEC Registered RIAs
  • Private Funds
  • Public Funds
  • Hedge Funds
  • Broker Dealers
  • Hybrid RIA/BD
  • Family Offices
  • Accountants
  • Recordkeepers
  • Third Party Administrators
  • Plan Sponsors and other financial institutions

Our entire team is trained and specializes within the FI industry. Unlike others, we offer exclusive E&O and Cyber Liability solutions for RIAs and life agents that can only be purchased from us. Lockton Affinity also has the advantage of being an independent broker representing all the other typical carriers that our competitors may offer.

Thanks to these world-class resources, we have the freedom to find a custom-fit solution for every client, whether with one of our proprietary solutions or with one of the many open market options we write for.

In addition to RIAs, our firm also works with broker dealers, life agents and IMOs and investment fund providers.

Yes, we currently insure over 1,600 independent RIAs across the country.

Yes. Our team has decades of experience working with clients in the FI industry.

We know that RIAs are largely on their own when it comes to shopping for and obtaining necessary coverages. We will work with your firm to find solutions that meet your compliance requirements, such as the recent changes in custodian insurance requirements.

Because some custodians have also cautioned that their requirements may not necessarily be enough coverage for every business to protect its assets, employees and clients, we will also look at your other exposures to help tailor coverage to your own individual needs.

Absolutely. Every cyber carrier that we represent offers robust post-breach services including but not limited to client notification services and specialized forensics.

At Lockton Affinity Advisor, we take the time to truly understand our client’s specific practice, and highlight the positive risk management details beyond what a standard application will uncover. Because we specialize within the RIA industry, we know what is important to the carrier’s underwriter and make sure we highlight those details. We also offer exclusive programs.

The cost of insurance for your firm will vary based on the size of your firm, the limits you choose, and the insurance provider you select. Lockton Affinity Advisor follows industry standard practices for underwriting, considering typical factors such as a business’s revenue, assets under management, number of employees, services provided and other factors.

Each Lockton Affinity Advisor customer receives a personalized price indication tailored to your unique insurance needs. Feel free to contact us to learn more about what insurance would look like for your firm.

Yes. We require just a signature to bind coverage. We then invoice our client and offer flexible financing options, if desired.

Yes. Lockton Affinity Advisor is part of Lockton Companies, one of the world’s largest privately held insurance brokerages. With us, you’ll access the deep knowledge, world-class resources and powerful carrier relationships of one of the largest and most reputable firms in the industry.

The insurance policies available through us are underwritten by an insurance carrier with an “A” rating from A.M. Best, the global ratings agency for insurance industry. Lockton Affinity stands behind you to ensure you are getting the best policy for your needs.

Questions about
insurance for RIAs

An RIA policy can extend coverage to anyone providing covered professional services on behalf of your business. This can include your clerical staff and other employees, independent contractors working for you when the policy starts, and your Chief Compliance Officer.

Recommendations should always be tailored to suit your particular needs. However, to be adequately protected today, most RIAs will need three commercial insurance policies: E&O, Cyber Liability (including coverage for social engineering) and Fidelity Bond (including coverage for false pretense and fraudulent instructions).

E&O coverage is triggered if a client is damaged or alleges they are damaged as a result of a delivered professional service that your firm provided or failed to provide. Additional policies are available to protect against a broad array of common risks, including claims for social engineering, theft by hacker incidents and theft by employee.

Common E&O claims include breach of fiduciary duty, trade/execution errors, suitability claims and contract disputes. Common cyber liability claims include fraudulent instruction claims, phishing and social engineering and ransomware claims. Common fidelity claims include fraudulent instructions and false pretense claims.

Errors and Omissions insurance (E&O) covers certain legal fees, judgments and settlements that you may face as a result of claims and litigation brought against you based on the advice or services you provide.

Certain levels of coverage are required by governing regulations and industry requirements, but even this protection may fall short in some cases. RIAs need to ensure their E&O coverage is adequate because today’s society is unfortunately very litigious. Despite your relationships with clientele or how careful you are in your role, you simply never know when a dispute may escalate to a claim, so it pays to be covered.

Yes. While we offer access to a very broad array of market solutions, we do offer a proprietary RIA solution available exclusively from Lockton Affinity Advisor.

This E&O policy contains a broad definition of Professional Services, including services and advice as a Financial Advisor, Financial Planner, Registered Investment Advisor, Registered Representative and Life Insurance Agent. Coverage is provided for services rendered for advice given to a client or customer by you for a fee, remuneration, or other consideration as it relates to a written agreement between you and your client. The policy extends coverage to services performed in the capacity of a fiduciary as it is defined by ERISA.

This policy excludes certain activities, including but not limited to: insider trading, foreign securities, performance guarantees, and alternative investments such as non-publicly traded REITS, uncovered options, private placements, derivatives, limited partnerships, and hedge funds not part of a mutual fund traded on a national exchange.

Cyber liability insurance provides coverage against the high costs that can accrue as a result of the theft or breach of client and customer data. If you keep personally identifiable information (PII) about your clients, such as credit card information, full names, addresses and more, you could be at risk.

Cyber liability covers computer hacks and viruses, as well as loss and theft of devices that contain records and passwords and paper files that might be stolen, mishandled or disposed of improperly.

Yes. As with our proprietary E&O solution, we offer broad access to market solutions as well as our own exclusive cyber liability solution.

This exclusive policy provides broad coverage for both first-party breach response services and third-party privacy liability and information security liability exposures as well as associated costs arising from security and privacy breaches when handling sensitive and personally identifiable information of others in your business.

This policy excludes certain activities, including but not limited to: loss under a merchant services agreement for acceptance of credit card payments; loss arising from unprotected portable computers or electronic devices; unlawful collection of personal information or failure to provide method to withhold consent from the collection; or intentional breaches or violations of privacy law.

Yes, reputational coverage is included in both our E&O and Cyber Liability solutions for RIAs.

Yes, defense expenses are typically included within the policy limit.

For example, our proprietary E&O policy for RIAs offers pre-claim assistance to cover expenses associated with the investigation and mitigation of a potential claim, up to $5,000. If a claim against you is pursued, you will be involved in selecting the counsel for your defense. Additional benefits include payment up to $50,000 in addition to your liability limit for attorney and related fees in response to a subpoena. And, you can expect reimbursement of legal fees and expenses resulting from a disciplinary proceeding, up to $50,000.

Yes, you can receive coverage for your prior acts matching your current coverage, if your current coverage has been maintained without interruption.

However, if you are insured solely through your Broker Dealer, your prior acts coverage could be limited.

Please note, if you are aware of circumstances that could result in a claim, these should be reported to your current insurer prior to binding new coverage with us.

Absolutely. At Lockton Affinity Advisor, we provide products and services that meet the compliance requirements of RIAs, including recent updates to the insurance requirements of Schwab, Fidelity, Pershing and other custodians.

Questions about
insurance for
life agents

You, the individual providing the covered professional services to your clients. The coverage can extend to your non-licensed employees in the event they are named as a co-defendant in a claim that has been brought against you.

Errors and Omissions insurance (E&O) covers certain legal fees, judgments and settlements that you may face as a result of claims and litigation brought against you based on the advice or services you provide.

Certain levels of coverage are required by governing regulations and industry requirements, but even this protection may fall short in some cases. Life agents need to ensure their E&O coverage is adequate because today’s society is unfortunately very litigious. Despite your relationships with clientele or how careful you are in your role, you simply never know when a dispute may escalate to a claim, so it pays to be covered.

Cyber liability insurance provides coverage against the high costs that can accrue as a result of the theft or breach of client and customer data. If you keep personally identifiable information (PII) about your clients, such as credit card information, full names, addresses and more, you could be at risk.

Cyber liability provides coverage for businesses or individuals that have been tasked with providing online security for their clients. This online security includes providing their clients with protection from data breaches and cyberattacks. In the event of a cybersecurity breach that results in your client suing you, the cyber liability insurance will pay for your legal fees and expenses.

Yes. In addition to broad access to market solutions, we offer our own exclusive cyber liability solution for life agents.

This policy covers you for third-party privacy liability and information security exposures as well as associated costs arising from security and privacy breaches when handling sensitive and personally identifiable information of others in your profession.

The policy excludes first-party breach response services and certain activities, including but not limited to: loss under a merchant services agreement for acceptance of credit card payments; loss arising from unprotected portable computers or electronic devices; unlawful collection of personal information or failure to provide method to withhold consent from the collection; or intentional breaches or violations of privacy law.

Yes, defense expenses are typically included within the policy limit.

For example, our proprietary policy for life agents offers pre-claim assistance to cover expenses associated with the investigation and mitigation of a potential claim, at the underwriters’ sole discretion. If a claim against you is pursued, the underwriters reserve the right in selecting the counsel for your defense. Additional benefits include payment up to $10,000 in addition to the aggregate limit of liability for attorney and related fees in response to a subpoena. And, you can expect reimbursement of legal fees and expenses resulting from a disciplinary proceeding, up to $10,000.

Yes, you can receive coverage for your prior acts matching your current coverage, if your current coverage has been maintained without interruption.

However, if you are insured solely through your Broker Dealer, your prior acts coverage could be limited.

Please note, if you are aware of circumstances that could result in a claim, these should be reported to your current insurer prior to binding new coverage with us.

Questions about
your current policy

Lockton Affinity Advisor policies become effective at 12 a.m. (local time) the day following purchase.

You should have received copies of your policy documents via email following your purchase. If you can’t locate them, please contact us at [email protected] or (844) 406-5958 and we will be happy to assist you.

The policies available from Lockton Affinity Advisor all feature individual policy limits.

An individual policy limit means you do not share your policy or its limits with a group of other insureds. While insurance policies are sometimes offered with shared limits as a means of lowering the cost of coverage, such policies also carry greater exposure for policyholders, since there is a risk the annual group limit may be exhausted when you go to file a claim.

Because Lockton Affinity Advisor only offers individual limits, you don’t need to worry about that possibility, since you will always have access to your full policy limits.

Our exclusive RIA E&O and life agent E&O policies do not have a deductible.

However, cyber liability coverage included with our life agent E&O policy has a $2,500 deductible, and the endorsement for a Series 6 License has a $2,500 deductible.

For more information about deductibles for policies you have with us, be sure to consult your policy documents. If you still have questions about your coverage, contact us and we’ll be happy to help.

Claim reporting information will be provided to you when you get your policy. As always, we are here to assist you if you have questions.

As one of the top insurance administrators in the country, we aim to be your advocate when it comes to your firm’s insurance and provide best-in-class service that is quick and efficient.

To minimize the cost and stress of a claim, we assign a claims liaison to all clients that have a claim. Your claims liaison will assist you along the entire claim process, including making sure damages are paid in a timely manner.

Yes. Every cyber carrier that we represent offers resources to help you avoid a claim.

For example, our exclusive cyber liability policy includes complimentary loss control and risk management information.

All relevant personnel within your organization will have access to Beazley Breach Solutions, a risk management portal that provides educational and loss control information relating to compliance with applicable laws, safeguarding information, preparing to respond to breach incidents and best practices.

If you become aware of a potential breach, follow the procedures outlined in your policy documents.

A single call or email to BBR Services, notifying the team of a suspected data breach, will begin activation of the following services:

  • Computer Forensic Investigators
  • Specialist Legal Services
  • Notification Services
  • Credit Monitoring
  • Call Center Support
  • Public Relation Consultants

We will work with you to ensure you have the coverage you need. See here for an explanation of how the process works. Reach out to [email protected] or (844) 406-5958 and let us know your needs.

Contact us

If you have any questions about the Lockton Affinity Advisor Insurance Program, please call one of our knowledgeable Associates today or fill out our contact form.

(844) 406-5958
Phones are answered Monday through Friday, 7 AM to 5:30 PM (CST).