What E&O Won't Cover!

[xrac]

Former N.J. Broker Sentenced To 15 Years For Client Fraud

 

[Norwayguy]

Former N.J. Broker Sentenced To 15 Years For Client Fraud

Well defrauding your clients is clearly not an "Error nor an Ommission" unless the ommission is this is a ponzi scheme and I am robbing you blind.

 

[LGilmore]

The biggest reason I ended my series 6 was over E&O. The BD decided to have their own E&O and required you to purchase it. The problem for me? it costs 4 times more than what I had and provided much less coverage. They were trying to force me to purchase coverage that my licensing wouldn't cover and if I committed those acts I would be going outside the scope of my license and thus "Voiding" my coverage completely.

It made more sense to leave than to stay and pay more for less.

 

[Norwayguy]

The biggest reason I ended my series 6 was over E&O. The BD decided to have their own E&O and required you to purchase it. The problem for me? it costs 4 times more than what I had and provided much less coverage. They were trying to force me to purchase coverage that my licensing wouldn't cover and if I committed those acts I would be going outside the scope of my license and thus "Voiding" my coverage completely.

It made more sense to leave than to stay and pay more for less.

Same here....I also did not like the total coverage the B/D had as one really big payout for a bad branch and the policy would hit its limits leaving my holding the bag if I had a claim.

 

[marcolifeproducer]

Same here....I also did not like the total coverage the B/D had as one really big payout for a bad branch and the policy would hit its limits leaving my holding the bag if I had a claim.

good information...will have to look into the terminology of my b/d provided E&O coverage...

 

[VolAgent]

good information...will have to look into the terminology of my b/d provided E&O coverage...

Don't bother. It is a group policy with an aggregate limit. Odds are, it is rather low considering how many RRs it covers.

 

[Norwayguy]

Don't bother. It is a group policy with an aggregate limit. Odds are, it is rather low considering how many RRs it covers.

I know, Scary right......................

 

[marcolifeproducer]

I know, Scary right......................

You can get coverage independently though right? I'm sure it's way more expensive

 

[Norwayguy]

You can get coverage independently though right? I'm sure it's way more expensive

Actually its cheaper...Then you have the question of coordinating benefits at least that what the broker quoting me the E&O policy said luckily after 10 years 2 years ago I saw the light and lunged FINRA.

 

[LGilmore]

"You can get coverage independently though right"

Going to depend on the BD. I always carried my own for 25 years without problem or concern from the BDers I worked with. Then, all of a sudden, what had worked fine for 25 years was a "problem" and I needed to buy "theirs".

Well, theirs was the s hit without even looking that deep, I pointed out very easily the problems just from the summary. Their answer? To work through us, you must use us. What about these problems? To work through us, you must use us. It NEVER was a case of telling me I was wrong in what I found, it was "this is what we're doing" and while I may be right in what I found, "this is what we're doing."

I just didn't feel like paying 4 times the cost for less coverage that would fold up on me if ever a claim was filed, along with all the other crap to have a securities license anymore was worth the aggravation.