Business Insurance for Your Financial Planning Business
As a professional financial planner, you have an obligation to provide your clients with accurate information. You may own an office. You may make visits to client’s homes. These are all factors contributing to your need for business insurance.
Having proper insurance coverage is essential. Yet, a basic policy may not be enough.
Determine Your Assets
The first step in selecting business insurance is to determine what assets you own. Financial planners may own or lease office space. Some may have expensive computer systems. Most will have furnishings in the office space.
These assets need property insurance. Your property insurance should be specific to the value of your assets. You’ll need to repair or replace them following damage, after all.
Commercial Auto Insurance
Financial planners who travel need commercial auto insurance on their work vehicle. You should maintain this policy for yourself or any employee driving on business. Your policy can contain liability, comprehensive, collision and other essential coverage. Talk to your insurance agent about the amount of coverage you need based on how frequently you use your vehicle for business.
Liability insurance protects others who visit your location. For example, it can help to minimize costs if someone falls on your property. You can use this coverage to repay them for their medical bills or lost income. A general liability insurance plan is a good start. It can provide for most basic liability claims. However, you’ll likely need more specific coverage for other assets.
Professional Liability Insurance
Financial advisors provide advice. They offer guidance. Sometimes, the advice provided does not go well. Even if you take every step possible, you may face a lawsuit related to the advice you provide to another party. Negligence can be a key factor for these individuals.
Having a professional liability insurance plan can help. It covers damage stemming from bad professional advice. It extends your existing liability insurance policy further. It gives you more confidence in making decisions. More so, it can often provide legal representation if you find yourself facing a settlement or trial.
What other business insurance do you need? This depends on the details of your business. You may need ample cyber threat coverage to protect your clients’ information. If you have numerous employees, you may need workers’ compensation coverage. Some businesses should consider employee dishonesty policies as well.
Work closely with your business insurance agent. Customize a policy to match each one of your risk factors. Plan to update it at least one time a year. A comprehensive but well-designed policy keeps your business safe while still maintaining affordability.