Financial Advisor Insurance Rates
How Much Does Insurance Cost for Financial Planners and Investment Advisors?

As a financial planner, the first conversation you have with your clients is probably about risk. Likewise, you'll have to think seriously about your business's own risk. Investment advisers and financial planners are in a difficult position: no one can predict the success of an investment with complete accuracy. Yet you could be sued if your advice causes a client to lose his money. A lawsuit ā€“ whether it's over a bad investment or a slip-and-fall accident ā€“ could bankrupt your RIA firm.

To protect their firm, many financial planners invest in business insurance, which can cover the cost of business lawsuits and other unpredictable expenses. Below, we'll look at sample insurance quotes to see what the typical investment adviser / financial planner pays for business insurance.

Note: Insurance quotes below are only estimates. Actual costs can vary.

HOW MUCH IS
General Liability Insurance?

What Does General Liability Insurance Cost for Financial Planners and Investment Advisors?

Financial planner General Liability Insurance is often referred to as basic business insurance because it can cover the cost of a number of common third-party lawsuits: slip-and-fall accidents, property damage, bodily injuries, and reputational injuries. This insurance won't cover lawsuits about your investments (see E&O Insurance below). But for these other lawsuits, GL can pay your legal costs, settlements, and damages you may owe clients, contractors, and other third parties your business interacts with. If a client visits your office, slips on a wet floor, and shatters her hip, GL Insurance can pay for the cost of the lawsuit.

The typical General Liability Insurance policy for financial planners and investment advisors costs $350 to $450, right in line with the average cost for small financial services firms in general.

Average Premium Rates on $1M / $2M General Liability Insurance Policies for Financial Planners and Investment Advisors Compared with Financial Services Firms in General
Name Industry Average
Average Cost for Small Financial Services Businesses (USD)
Accountant Average
Average Cost for CFPs and RIAs (USD)

Mean policy premium:

$454.17

$404.37

Median policy premium:

$425.00

$425.00

To see how the cost of business insurance for financial planners and advisors compares with other industries, visit Insureon's 2014 Business Insurance Cost Analysis New browser window icon..

HOW MUCH IS
a BOP?

What Does a Business Owner's Policy Cost?

A Business Owner's Policy is an insurance package that bundles two policies: General Liability (see above) and Property Insurance. Why buy a BOP package? Insurers often give you a discount on your premiums if you buy Property coverage with your GL. BOP Property Insurance can cover your business property ā€“ insuring your office equipment, furniture, and other business-owned items. If a fire destroys your building, Property Insurance can reimburse your office for repairs and the cost to replace your property. In addition to fire coverage, Property Insurance can also cover theft, vandalism costs, and some weather damage.

A Business Owner's Policy for financial planners / registered investment advisers usually costs $500 to $1000.

Average Premium Rates on Business Owner's Policies with a $1M / $2M General Liability Limit for Financial Planners and Investment Advisors Compared with Financial Services Firms in General
Name Industry Average
Average Cost for Small Financial Services Businesses (USD)
Accountant Average
Average Cost for CFPs and RIAs (USD)

Mean policy premium:

$596.57

$733.61

Median policy premium:

$500.00

$500.00

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Free Insurance Quotes for Financial Planning and RIA Firms

For free quotes on business insurance for RIA and financial planning firms, use insureon's online insurance application. The application only takes minutes and you'll get a variety of insurance quotes from top providers emailed to you by one of insureon's RIA insurance specialists.

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