Oklahoma requires all Investment Advisors to have E&O insurance
Not many states in the US mandatorily require RIAs to carry E&O insurance, but due to a recent legislative change, Oklahoma has just joined that short list. If you’re like me, whenever anyone tells me that I have to do something, it tends to rub me the wrong way (call it my rugged American individualism). On the other hand, it’s obviously important that we stay up to date on, and aligned with, regulatory requirements. So, if you are an advisor in the beautiful state of Oklahoma, you may be asking yourself (and perhaps asking yourself for the first time)—how do I make sure I am entirely compliant, have appropriate coverage, and don’t overpurchase insurance? The most important thing you can do right now is make certain you are working with an insurance professional that understands your business. The last thing that you want is a client claiming your fiduciary duty was breached because this was not properly addressed.
The good news is that Box Professional was built exclusively for advisors. Having been advisors, we understand that the last thing you need is to spend more money and more time on yet another compliance-driven box to check. Because we only serve advisors, our process is profoundly more efficient than you will find with even the best generalist brokers. Here is what you can do. Schedule a discovery call through the link on this post. If you have coverage, we can create a complimentary RIAview for you. This RIAview is an analytical tool we built to make sure you are receiving the best value, using the unique parameters of your situation as inputs. Make adjustments as needed.
Be aware—NOT all E&O insurance is created equal. These coverages are NOT standardized by Insurance Services office (like almost all other forms). The most cost-effective type of E&O coverage you can get is what’s called a “group plan,” but they always have exclusions that may extremely limit the value. That is why having a specialist insurance broker is the most important decision you can make in this arena. The good news about the lack of standards is we can be more effective in carving out those areas where you may not NEED coverage, but still meet our goals of regulatory requirements—in other words, while the complexity of the space is a headwind, the flexibility we gain is a huge boon.
As of November 1, 2020, all investment advisors applying for registration are required to have $1 Million Errors and Omission limits (660:11-7-21). Current Registered Investment Advisors must submit proof they maintain the required coverage within 90 days of the end of their fiscal year (660:11-7-31). All investment advisors must have cybersecurity policies and procedures that are in compliance with current statutory requirements (660:11-7-46) (Box Professional Insurance has close relationships with a host of compliance firms to support any cyber compliance needs).
With a RIAview in your hand, you will be confident in your next steps. You can be ahead of the regulatory compliance questions that we know are coming all, too soon. Most importantly you will know what to expect. The next step is to follow the link below and reserve a time to have a brief call. and we can help you navigate this situation.
Written By: Chad Ramberg
Today’s BPI Advice: Many insurance brokers can help you buy insurance. When it comes to meeting regulatory requirements, choose an insurance professional that specializes in working with clients like you.
Case studies, testimonials and other information on the website are for illustrative purposes only, and may not reflect the terms of any particular insurance policies nor the coverage of any specific claims. Box Professional Insurance makes no representations of any kind regarding coverage or the specifics of any policy or claim. See your insurance carrier and policy for details on coverage, exclusions and limits.