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Maywood, NJ 07607

Wide definition of covered activities and who is protected

Covered Activities:

  • Professional Services means services you perform for a client or professional association in your capacity as an appropriately licensed, accredited or certified investment adviser or registered representative.

Professional Services as an Investment Adviser shall not include:

  • Any services rendered during the period of any suspension or revocation of the Insured’s certification, liscensure, accreditation appointment or other right to practice as a Registered Representative, Registered Investment Adviser, Financial Adviser, Financial Consultant, and Life insurance Agent; or


Investment Adviser means an individual who is in the business of providing:

  • Financial Planning Services as a Financial Planner; or,
  • Investment Management Services as A Registered Investment Adviser or,
  • Life Insurance Agent; or,
  • Registered Representative; or
  • Services as a “3(38)” adviser as defined by ERISA section 402(c)(3); or
  • providing general financial education courses and seminar including, but not limited, courses in support of Section 404(c) of Employee Retirement Income Security Act of 1974 (“ERISA”).


Coverage for acts as a fiduciary when performing ERISA type plans

Coverage for Fiduciary Liability provided by endorsement which states:

Covered Act also means a Fiduciary Act by you, during the Policy Period and after the retroactive date stated in the Declarations.

Fiduciary Act means any actual or alleged:

  • Act, error or omission solely in the Administration of a Plan; or
  • Professional Services as a fiduciary for others for a fee; or
  • breach of the responsibilities, obligations or duties imposed upon any of you in capacity as a fiduciary of any Plan other than a Plan organized for the benefit of you or your employees by: (i) ERISA; (ii) HIPAA; or (iii) the common statutory law of the United States of America or any other jurisdiction anywhere in the world
  • other matter claimed against the of the you solely because of your service as a fiduciary of any Plan; or
  • act, error or omission solely in the Administration of a Plan.

The Endorsement also expands the definition of who is covered as being:

  • Any person who is, was, or hereafter becomes your partner, principal, officer, director, member, or employee, but only while acting as a fiduciary or duly elected or appointed trustee, director or officer of any Plan, other than a Plan organized for the benefit of you or your employees

It also extends to the definition of damage that includes:

  • Damages shall include the 5% or less, or 20% or less, civil penalties imposed upon an Insured under 502 (i) or (l), respectively, of ERISA.


Coverage by endorsement for Activities Life Insurance agent or trustee

Endorsements available to expand coverage to include:

  • Sale of Life Insurance Products
  • Trustee Liability
  • Limited Accounting Services

Automatic Coverage for:

  • Subpoena Exposures – no limit per policy period.
  • Exposure reimbursement – up to $500 per day and an aggregate of 10,000 per policy period.

Reduced Deductible for:

  • use of Alternative Dispute Resolution – up to $25,000.
  • early settlement of claims – your deductible can be reduced by 25% to a maximum of $25,000.


Limits up to $1,000,000 each loss / $2,000,000 annual aggregate

Various Limits and deductible options are available:

  • Limits of Liability range from $250,000 each claim / $500,000 annual aggregate to $1,000,000 each claim to $2,000,000 annual aggregate.
  • Deductibles range from $5,000 each loss to $25,000 each loss.


Covers personal liability from Pension Protection Act of 2006

The definition of covered persons is as follows:
You and/or your means only the following:

  • the Named Insured designated in the Declarations;
  • any person who is, was, or hereafter becomes your partner, principal, officer, director, member, or employee, but only while acting on your behalf;
  • any of your present or former temporary or leased personnel, or present or former subcontractor or independent contractor engaged by you, but only while acting on yourbehalf;
  • any person who is, was, or hereafter becomes the appointed Chief of Compliance Officer pursuant to Rule 206(4)-7 of the Investment Advisers Act of 1940 solely while acting in such capacity for the Named Insured or Predecessor In Business;
  • the heirs, executors, administrators, and legal representatives of any of you, but only for the Covered Acts committed prior to such death, incapacity or bankruptcy, and only to the extent you would have otherwise been provided coverage under this policy.


This information is intended to provide a general overview of the coverage described. Only the insurance policy and any coverage quotation offered can give actual terms, coverage, conditions and exclusions.