NAIFA-endorsed Professional Liability Insurance

Agency Agent Coverage

Serving the needs of insurance agencies and others engaged in insurance and related financial services is NAIFA's mission. The NAIFA-endorsed Professional Liability (E&O) Program is designed to meet your unique needs. Coverage is underwritten by New Hampshire Insurance Company.

The NAIFA-endorsed Professional Liability Insurance Program is only available to NAIFA members. If you are not a NAIFA member, learn about NAIFA.

New 2010 Coverage Endorsements

New Hampshire Insurance Company has received State approval for the following coverage enhancements for the NAIFA Professional Liability Program, offered at no additional premium:

Liberalization Endorsement
This mandatory endorsement adds coverage as approved by the appropriate regulatory authority.

Broadened Professional Services Endorsement
This mandatory endorsement modifies the definition of professional services to include activities as an expert witness, and teaching accredited insurance courses and as a notary or instructor of an accredited insurance course.

The coverage enhancements provided by New Hampshire Insurance Company demonstrate their ongoing commitment to NAIFA Program. If you have any questions or would like to learn more about these new endorsements, included at no additional cost, please call a representative at
(800) 247-3448.

Criminal Acts Exclusion Endorsement – Modifies the policy exclusion relating to criminal acts so that it applies only to those who have actually been adjudicated guilty of criminal activities.

Deductible Reduction Endorsement – Offers a 50% reduction to the deductible if all three of the following conditions are satisfied:

The Named Insured has been insured in the NAIFA Professional Liability Insurance Program for three continuous years as of the date the claim is reported.
The claim is made against an Insured who is a member in good standing with NAIFA as of the date the claim is reported.
The claim is made against an Insured who has received a certificate of completion of the NAIFA Risk Management Program within three years prior to the date the claim is reported.

Regulatory Inquiry and Subpoena Expenses Endorsement – Provides payment up to $5,000 for attorneys fees and court costs to assist in responding to listed types of investigations, or defense costs incurred in responding to subpoenas related to professional services. These payments are not subject to the policy deductible and do not reduce the policy limits of liability.

Errors & Omissions Coverage
24-hour protection against claims arising from negligent acts, errors and omissions in the conduct of your business.

Choice of Limits
Limits include both a per claim limit and a higher annual aggregate limit.

$500,000 per claim/ $1,000,000 annual aggregate
$1,000,000 per claim/ $2,000,000* annual aggregate
$2,000,000 per claim/ $2,000,000 annual aggregate
$3,000,000 per claim/ $3,000,000 annual aggregate
$4,000,000 per claim/ $4,000,000 annual aggregate
$5,000,000 per claim/ $5,000,000 annual aggregate

*The highest limit available in Alabama and Texas is $1,000,000/$2,000,000.

Choice of Deductibles

$1,000
$2,500
$5,000
$7,500
$10,000
$15,000

Claim Expenses Outside the Limits
Your complete legal defense is paid in addition to the limits of liability you choose, for all covered claims. Regardless of whether you win or lose or even if the claim or suit is found groundless, false or fraudulent, your legal defense will be paid, subject to the "consent to settle" provisions of the policy. In certain circumstances, you may be offered coverage which applies the deductible to defense costs.

Protection for Carrier Insolvency
As long as the products you sell are fully insured by an admitted carrier and rated A- or better by A. M. Best at the time of placement, you're protected against legal liability as a result of future insolvency of that carrier.

Wrap-Around Coverage The policy can provide coverage around your existing errors and omission coverage. Your present program may provide coverage for certain products. The NAIFA-endorsed program can 'wrap' around the existing coverage to provide coverage for activities not covered under the existing E&O policy. (This is subject to underwriting approval.)

Protection Against Personal Injury Lawsuits
Protects you against personal injury lawsuits resulting from slander, libel, invasion of privacy or false arrest while performing professional services as a life insurance agent or broker.

Coverage for Your Agency
Coverage for your Agency would extend to owners, principals, partners, employees, sub-agents (only for the business written through your agency which is insured under the policy), even part-time and temporary clerical employees at no additional premium. Coverage is also available for non-employee producers writing business through your agency.

Enhancements to the Program:

Many options are available for extended reporting endorsements including an Unlimited Extended Reporting Period (ERP) option
FREE – 60 day extended reporting endorsement should you leave the program or your coverage lapses
529 Plans, Life Settlement and Life Settlement Referrals coverage is in addition to your Mutual Funds and Financial Products.
A Free Two Hour Legal Consultation is available for advice from a qualified attorney on a potential claim or circumstance that could lead to a claim.

Additional Coverage Features Include:

No Restrictions on Number of Carriers
Prior Acts Coverage - 3 years of continuous E&O coverage qualifies for full prior acts subject to underwriting approval
Extended Claims Reporting Period - broadest available, including an Unlimited Extended Reporting Period to 10 year ERP
Consent to Settle

Expand Your Basic Coverage with Additional Benefits:

Mutual Funds Coverage with a maximum limit of $1,000,000 per policy
Financial Products (Stocks, Bonds, Limited Partnerships, Unit Investment Trusts) Coverage with a maximum limit of $1,000,000 per policy
Property and Casualty Insurance Coverage with a separate limit provided
Financial Planning: Coverage for financial planning and RIA activities is included with the policy for acts involving the sale of a covered insurance and/or securities product

The descriptions contained herein are summaries only. Please see actual policy for full terms, conditions and exclusions. All submissions are subject to underwriting guidelines. Coverage may not be available in all jurisdictions.

Insurance License Information