E&O Headquarters
  • Securities Suitability: What brokers need to know to stay out of trouble
    Zeroing in on the suitability concepts securities brokers must understand to avoid legal and errors-and-omissions insurance problems and a closer look at Rule 2111’s new three-part test brokers must follow to prove their sales are suitable.
  • Insurance Suitability: It's back-to-basics time!
    A recent report suggests advisors are still dropping the ball when it comes to documenting the discussions they have with prospects about risk tolerance, goals, needs, and financial status. To that end, here’s a quick refresher on basic insurance (primarily, annuity) suitability concepts.
  • At war with your customers? Four attitude shifts to make now!
    Have you caught yourself being overly aggressive toward prospects and overly worried about customers once you’ve closed the sale? This is the inevitable result of viewing customers as the enemy rather than valued partners. Losing the martial mindset requires these four attitude adjustments.
  • 10 ways to close the client expectations gap
    By establishing proper expectations at the outset of the client relationship and managing those expectations over time, you will greatly reduce the likelihood of miscommunication and unmet expectations. Here are 10 principles that can help you set and manage client expectations.
  • Advertising compliance guidelines: 25 ways to avoid nasty outcomes
    The use of non-compliant advertising is the regulatory issue that never dies. Following these rules for insurance advertising will protect you from complaints, lawsuits and E&O claims.
  • Relearning the Neasham Lesson: Client incapacity still a big threat
    How to protect yourself during the sales process when it comes to recommending annuities to seniors and recognizing early warning signs for reduced mental capacity.
  • Apology accepted: How to really make amends with customers
    How you apologize after making a mistake can make a big difference. A case study on a well-crafted apology after a real-life situation offers some great lessons on how to get it right. Why not borrow from their playbook and invest more time in crafting your client apologies?
  • E&O on the Fly, Part 2: Quick quiz highlights what you need to know about exclusions
    Do you know what your policy covers exactly and what it doesn’t? Take this brief true-or-false quiz to test your knowledge about important E&O policy exclusions.
  • Variable Annuity Hot Spots: Compliance Tips for the Cautious Advisor
    Variable annuities attract regulatory scrutiny like magnets pick up metal shavings. To avoid client complaints, E&O claims and regulatory enforcement actions, make sure to always sell them properly. Adhering to this checklist will keep you in the safe zone.
  • Trust’s poison pill: Why conflicts of interest are an advisor’s worst medicine
    If client trust is the nutrient that builds healthy financial-services careers, then conflicts of interest are the poison that kills them. With the fiduciary standard looming on the horizon for securities and insurance producers, advisors will be under greater pressure to better manage their conflicts — or put their careers in jeopardy.
  • E&O on the fly: Essential buying knowledge for busy advisors, Part 1
    Financial professionals often buy errors-and-omissions insurance for themselves under severe time constraints and without thoroughly knowing its provisions. To avoid costly surprises, here’s how to streamline your due diligence.
  • Financial Advisor Transparency: The Power of Straight Talk
    At the National Ethics Association, we often discuss the actions financial advisors should take to become more transparent with their clients. These fall into four main categories:
  • The truth about client lies . . . and what to do about them
    Advisors can safely shrug off most client lies. But some must be challenged to protect the client and the advisor. Here’s how and why to meet them head on.
  • Conscious Uncoupling: 7 steps to firing clients ethically
    Applied to the challenging tasks of dismissing a bad client, the term Gwyneth Paltrow made famous, “conscious uncoupling,” implies a mindful, calm, and amicable approach to winding down unproductive and frustrating client relationships. Here are the major elements of a mindful and ethical approach to dismissing a client.
  • Are robo-advisors winning? Time to play the ethics card
    As human financial advisors increasingly face competition from “robo-advisors,” one way to combat this threat is the ethics card: If ethics is the domain of thought that deals with the right way to behave (or invest), then robo-advisors may be ill-equipped to be ethical.
  • Honesty first: 8 steps to finding trustworthy employees
    If you’re a solo practitioner looking to hire your first employee, you’re no doubt asking yourself: “How do I hire an honest employee?” Here are tips to help you carefully recruit and select new employees, using every tool possible to deter unethical and larcenous conduct.
  • E&O No: Do's and Don'ts for Responding to Client Disputes
    Many financial advisors view E&O disputes as something that only happen to incompetent or criminal financial advisors. In reality, the odds of incurring a claim or lawsuit are quite high, with insurer statistics suggesting as many as one in seven advisors experience a claim at some point in their careers
  • Let Lying Dogs Sleep: Time to Abolish Misrepresentation?
    For many insurance and financial advisors, misrepresentation has become just another sales technique. For financial institutions, it’s become an accepted cost of doing business. For consumers, it’s become something bad advisors do—and have always done.
  • Ethical Moments of Truth: Will You Rise to the Occasion?
    Have you or your employees ever faced an angry customer? Then you’ll recognize the interaction as a “moment of truth” in the customer’s relationship with your company. If you resolved the person’s complaint, you’d likely retain the customer long term.
  • Be safe, not sorry: Your E&O documentation checklist
    While full documentation of your insurance cases is the best E&O prevention strategy, it’s easy to get lax about this crucial business task. This 19-point checklist will remind you of the documentation basics that may keep you out of court.
  • Good Business: More Tips for Lowering Your E&O Risk
    As a financial advisor, you’ve no doubt read a compliance manual or three in your time. These documents are typically rule-driven, which means they can be long and dense to work with.
  • Good Business: 20 Final Tips for Lowering Your E&O Risk
    As a financial advisor, you’ve no doubt read a compliance manual or three in your time. These documents are typically rule-driven, which means they can be long and dense to work with.
  • Do Your Marketing Seminars Flunk the Ethics Test ?
    According to a recent study, six in 10 workers say they and/or their spouse have less than $25,000 in total savings and investments (excluding their home and defined benefit plans), and 36 percent say they have less than $1,000. No wonder consumers on the brink of retirement are anxious to play catch up so they don’t have to rely solely on Social Security.
  • Transparently Tough: Four Ways to Survive Nasty Online Reviews
    Ever been slammed in an online review? How did you react—with calm professionalism or with angry indignation? And did you use the review as an opportunity to improve your insurance business or merely to defend your ego?
  • The Four Temptations of a Financial Advisor
    Even the best-intentioned financial advisor can fall prey to the temptations of unethical conduct. How? By giving in to these four seductive pressures.
  • Money Addiction? Five Signs of Impending Crash
    Money addicts are everywhere. Take the case of Deed Amin Salem. A former Goldman Sachs trader, he sued the company because he only received an $8.5 million bonus. Apparently, he'd been expecting $13 million and told his mother about it.
  • Good Business: 20 More Tips for Lowering Your E&O Risk
  • Make A PACT For Trustworthy Websites
    Back in the dark ages of the Internet—say, around Y2K—financial advisor web sites were as primitive as Fred and Wilma Flintstone’s Bedrock home.  Yes, they targeted worthwhile objectives such as:
  • Good Business: 20 Quick Tips for Lowering Your E&O Risk in 2014
    As a financial advisor, you’ve no doubt read a compliance manual or three in your time. These documents are typically rule-driven, which means they can be long and dense to work with.
  • Partner with Care: Avoid Weak Links to Prevent Legal Problems
    As we write this article, the media is abuzz with accounts of the U.S.
  • Looking for a New BD, FMO, or RIA? Don’t Forget to Check out their E&O
    Deciding which broker-dealer (BD), financial marketing organization (FMO), or registered investment advisor (RIA) with whom to affiliate is never a trivial matter. Typically, financial advisors and insurance agents choose to contract with those organizations that provide the optimal mix of payout, product choice, marketing support, technology prowess, sales/marketing assistance, and compliance expertise.