Unique E&O Question

[Full Throttle]

I have a comprehensive E&O policy through my B/D that I know will screw me if anything actually happened. I don't have a choice in the policy selected, but it's a $50,000 deductible. For any securities related issues (not fraud), the B/D agrees to cover the entire deductible. For outside insurance business (90% of my business), they would cover none of it.

Is there a policy option available with a limit of $50,000 to cover insurance related business up to the deductible? If it exists, I imagine it would be cheap. Where would I look for such a policy?

 

[Norwayguy]

I have a comprehensive E&O policy through my B/D that I know will screw me if anything actually happened. I don't have a choice in the policy selected, but it's a $50,000 deductible. For any securities related issues (not fraud), the B/D agrees to cover the entire deductible. For outside insurance business (90% of my business), they would cover none of it.

Is there a policy option available with a limit of $50,000 to cover insurance related business up to the deductible? If it exists, I imagine it would be cheap. Where would I look for such a policy?

I had a similiar concern back when I was registered....On speaking with a couple E&O sellers the talked me out of purchasing additional coverage because both policies would point the finger at each other and they would not end up paying...kind of like 2 health policies...I was lucky in the deductible was 5K I was more concerned with the B/Ds total coverage which I think was only 5 Million. I shortly decided to drop my registration so it became a non issue I picked up my own E&O.

 

[Full Throttle]

That was my concern about purchasing another cheap E&O policy with limits that overlap for insurance. However, I highly doubt I could find one with a $50,000 limit to prevent an overlap, but I thought I would toss it out there for suggestions.

 

[DHK]

Hmmm... the Aflac of E&O? Offering "supplemental E&O"? I'm sure Glenn Neasham would've bought!

 

[Norwayguy]

Hmmm... the Aflac of E&O? Offering "supplemental E&O"? I'm sure Glenn Neasham would've bought!

Come on DHK, this is a real issue for people afflicted with being a Registered Rep...The B/D requires you to use thier E&O and thier policy leaves you seriously unprotected.