Fox Point Programs based in Wilmington, Del., has partnered with underwriters at Lloyds of London to offer errors and omissions insurance for securities brokers-dealers. The coverage provides protection against allegations of wrongful acts committed by the insured as well as those attributed to individual registered representatives operating on the insured’s behalf.
The product is best suited for broker-dealer firms generating between $1 million and $10 million in revenues annually. Other factors used to determine eligibility include years of experience, number of registered representatives on staff and types of services offered.
Limits are up to $1 million per claim and $3 million aggregate. Several retention options are available.
Coverage is written on a claims-made basis. Eligible risks do not derive more than 25 percent of its commission income from REITS, limited partnerships, or investment banking activities. The program is available in all states. For entities domiciled in New York, Fox Point can place risks on a one-off basis through its brokerage markets.
Source: Fox Point Programs
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