Financial Planners Insurance
Protect your practice from unexpected challenges and focus on delivering trusted advice with Financial Planners Insurance.
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The Growing Need for Financial Planners Insurance
Financial planning is a trusted profession, shaping lives through advice on superannuation, investments and retirement.
Here’s why Financial Planners Insurance is essential:
01
Regulatory Requirements: The Australian Securities and Investments Commission (ASIC) mandates Professional Indemnity Insurance for all licensed financial planners to cover potential claims from advice-related errors or omissions.
02
Costly Claims: The average Professional Indemnity claim in 2024 cost firms around $250,000 with legal fees often exceeding $100,000. Insurance mitigates these financial burdens.
03
Digital Exposure: With financial planning leads coming from digital channels, cyber risks (e.g., phishing and data breaches) are rising. Cyber Insurance is now a must-have.
04
Reputation Protection: A single claim can harm your brand. Insurance indicates professionalism, reassuring clients and boosting trust in a competitive market.
Common Risks Covered by Financial Planners Insurance
Financial Planners Insurance typically covers the following risks:
Professional Indemnity: Claims for alleged negligence, errors or omissions in financial advice, including legal costs and compensation.
Public Liability: Third-party claims for injury or property damage during consultations or at your office.
Cyber Risks: Data breaches, hacking and ransomware, covering recovery costs, client notifications and fines.
Business Contents and Equipment: Damage or loss of office assets like computers and furniture.
Management Liability: Claims against directors or officers for mismanagement, covering legal defence fees and settlements.
General Property: Loss or damage to portable equipment, say, tablets or phones used for client meetings.
Business Interruption: Lost income and extra expenses from disruptions including fire, flood or IT outages.
Key Considerations in Choosing Financial Planners Insurance
When getting Financial Planners Insurance, think of these:
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Regulatory Compliance
Ensure Professional Indemnity Insurance meets ASIC requirements for Australian Financial Services Licence (AFSL) holders.
Coverage Scope
Verify the policy covers advice-related claims, cyber risks, public liability and business assets.
Practice Size
Choose scalable coverage for solo planners, boutique firms or large practices.
Premium Costs
Carefully compare quotes.
Claims Process
Opt for insurers with efficient, Australia-based claims support.
Cyber Protection
Prioritise Cyber Insurance, especially since leads now often come from digital channels.
Policy Flexibility
Select customisable policies aligning with services like superannuation or ESG investing.
Insurer Expertise
Partner with providers experienced in Australia’s financial services sector.
Frequently asked questions
Do I need insurance if I’m a solo financial planner?
Yes! Solo planners face the same risks as larger firms, including client claims and cyber threats. Here at Tank Insurance, we can help you look for affordable coverage that fits your practice’s size and budget.
Can insurance protect my business if a client disputes advice given years ago?
Yes, if your Professional Indemnity Insurance includes Retroactive Cover for claims related to past advice, provided the policy was active when the advice was given. This is critical as claims can surface years later.
What role does insurance play in managing risks from robo-advice platforms?
Cyber Insurance and Professional Indemnity can cover errors in automated advice systems and data breaches.
How does insurance help if my practice expands to offer new services like cryptocurrency advice?
Tailored policies can cover emerging areas like crypto or ESG investing, protecting against claims from untested markets. You can discuss your expansion plans with us at Tank Insurance to ensure your coverage aligns with new risks.