Professional Liability Insurance for Financial Planners

If you're a financial planner, you already know the weight your advice carries. People trust you with their investments, retirement goals, and long-term financial dreams.

But what if something goes sideways—like a client losing money and blaming your guidance? That’s where professional liability insurance for financial planners steps in. It’s not just a safety net; it’s peace of mind. Whether you're managing portfolios, giving tax advice, or building retirement strategies, this insurance can help shield your business from the financial fallout of lawsuits, even if you did everything by the book.

General Liability

Property Coverage

Professional Liability

Workers Compensation

Professional Liability Insurance (PLI) for Financial Planners

Professional Liability Insurance (PLI) is designed to protect professionals and businesses from claims of negligence, malpractice, and other risks tied to the services they provide. Whether you're offering advice, a service, or a product, PLI is essential to safeguarding your reputation and finances if things go wrong.

Example: A client claims you recommended an investment strategy that caused them significant financial losses. They sue you for negligence. Your PLI policy can help cover legal fees and any potential settlement.

What Does Professional Liability Insurance Cover for Financial Planners

PLI covers a wide range of potential risks. Here are a few key examples of what’s typically included:

Legal fees: If someone sues you, PLI can cover the cost of hiring an attorney.
Settlements and judgments: If a case is settled or results in a judgment, your policy can help pay those costs.
Claims like copyright infringement, negligence, and personal injury: It helps with financial protection against accusations that your service caused harm or loss to your clients.

Example: A former client alleges that a poorly managed estate planning recommendation caused legal complications. You’re pulled into a messy legal battle, but your PLI—and maybe a Business Owners Policy (BOP)—can step in to handle both legal and business interruption costs.

Who Needs Professional Liability Insurance? Financial Planners

Professional Liability Insurance isn’t limited to one industry. A wide variety of professionals and businesses can benefit from it, including:

Example: You’re driving to a client meeting and accidentally rear-end another car. Your commercial auto insurance kicks in to cover damages and medical costs—because yeah, even your drive time is part of the job.

Other Insurance for Financial Planners

Besides PLI, there are a few other types of insurance you might want to think about:

General Liability Insurance: Covers injuries or property damage that happen at your office.
Cyber Liability Insurance: Super helpful if you handle sensitive financial data online (and let’s be real—who doesn’t?).
Business Owner’s Policy (BOP): A package that often combines property and general liability insurance.
Workers’ Comp: If you have employees, even just one.

Custom Financial Planner Insurance

USA Insurance has over 20 years of experience helping financial planners like you find the right coverage at the best rate. You can request a quote and buy a policy online in under 15 minutes. Seriously, it’s that easy.

With over 240 carriers and more than 20 years of experience, USA Insurance can help you shop smarter and faster. Get the best rate for your financial planner insurance today. Need help? Our live, USA-based support team in Burbank, CA, is just a call away.

Let USA Insurance do the heavy lifting. We’ve been at this for 20+ years and partner with over 240 insurance providers. Whether you're just starting out or running a multi-advisor firm, we’ll find you a plan that fits—quickly and affordably.