E&O Insurance

As an XYPN member, you can access a members-only E&O (Errors and Omissions) insurance policy! Our policy is through Markel, administered by Starkweather and Shepley Insurance Brokerage Inc.

Group Program Term and Policy Documents

The policies for June 1, 2024 - May 31, 2025 are available below:

• Regular Policy
• Enhanced Policy

2024-25 Policy Tiers

There are two plans available in 2024-2025 based on your revenue level:

Option 1: Revenue below $250k

• Price: $155 /month
• $20 million aggregate limit
• $1 million limit per firm
• $5,000 deductible
• The policy provides coverage for any owner, employee, or independent contracting while providing professional services on behalf of the insured firm.
• The policy includes "prior acts coverage" dating back to the registration date of your firm. This is coverage for any unknown prior act which could arise to a "claim."
• Trading error coverage (Execution Errors) is included with a $1,000,000 limit and policy deductible.
• Certain aggregate limits for cyber coverage are up to $250,000 per coverage and a $1,000,000 aggregate limit.
• Sub-limit for alternative investments up to a $100k claim, with a $250k aggregate limit (excluding cryptocurrencies).

Option 2: Revenue between $250k and $750k

• Price: $279 /month
• $15 million aggregate limit
• $1 million limit per firm
• $10,000 deductible
• The policy provides coverage for any owner, employee, or independent contracting while providing professional services on behalf of the insured firm.
• The policy includes "prior acts coverage" dating back to the registration date of your firm. This is coverage for any unknown prior act which could arise to a "claim."
• Trading error coverage (Execution Errors) is included with a $1,000,000 limit and policy deductible.
• Certain aggregate limits for cyber coverage are up to $250,000 per coverage and a $1,000,000 aggregate limit.
• Sub-limit for alternative investments up to a $100k claim, with a $250k aggregate limit (excluding cryptocurrencies).

If your annual revenue is over 750k, congratulations! While we don't have a policy that supports your revenue level right now, you can reach out directly to Starkweather and Shepley at xypn@starshep.com for an individual quote. 

Optional Coverage Available

• Divorce Financial Consulting: $500,000/claim, $21/month
• Tax Preparation: $500,000/claim, $21/month
• Management Liability: $500,000, $21/month

No changes to optional coverages can be made during the term of the policies.

If you do Divorce Consulting and/or Tax Prep via a different LLC but have the same ownership as your planning business, we can add that coverage to your policy for the above fee, instead of writing a one-off policy.

Account Management

Sign Up for Coverage

1. Steps to Sign-Up:

• Log in to your Member Portal to access the E&O Insurance sign-up.
• Provide your contact information, confirm your firm’s revenue, and select any desired add-on coverage.
• Click the Submit button to send your information to Starkweather and Shepley.

2. Once submitted, Starkweather and Shepley will:
   • Review your details and send you application credentials, including a user ID.
   • Require you to upload supporting documents to their portal. Be prepared with:
     • A sample of your client contract(s) for each professional service you offer.
     • A Certificate of Insurance for current coverage (if seeking prior acts coverage).
3. Important Notes
   • To ensure your coverage is effective on the first day of the following month, you must complete your application with Starkweather and Shepley by the 20th of the current month. Applications completed after the 20th will result in coverage starting the first day of the subsequent month.
   • You can begin your application as soon as you receive credentials.
   • Your policy becomes active only after the application is fully completed.
   • Once approved, your Member Portal will update to reflect your active E&O policy as part of your XYPN membership.
4. Complete your application today to enjoy seamless E&O coverage!

Cancelling Coverage

1. Steps to Cancel:

• Log in to your Member Portal to access the E&O Insurance cancellation feature.
• Confirm your contact information.
• Click Close Account to submit your cancellation request.

2. What happens next?
   • Starkweather and Shepley will review your request and contact you about the policy cancellation.
   • Your Member Portal will update at the end of the month when your coverage ends, reflecting that your E&O policy is no longer active through your XYPN membership.
3. Cancellation Policy
   • To end your coverage effective on the first day of the following month, you must close your account with Starkweather and Shepley by the 20th of the current month. Requests submitted after the 20th will result in coverage ending on the first day of the subsequent month.
   • There is a ninety (90) day Extended Reporting period for which you can submit a “claim” for up to 90 days after you elect to be removed from the program. Under “Claims made” policies, once you are removed, there is no coverage for a claim which may arise.
4. Take these steps today to ensure your coverage is canceled as planned!

Important Notes

• Unless you register your firm in the State of Oregon, your firm must be registered with your state before seeking coverage. However, you can begin working on the application as you prepare to launch your firm. For Oregon-based investment advisers, you can sign up for coverage upon starting the initial registration process.
• If you currently use another provider, you must wait for renewal to join our policy.

Billing

• All billing and invoicing for your E&O Insurance Policy are handled directly through XYPN. You can pull any receipts and invoices for E&O through the Billing Tab of your member portal.

FAQs

Are there any upfront fees with this policy?

• No! That’s one of the many advantages of this policy.

When do I need E&O insurance?

• It depends on many factors, including whether or not you’re using a TAMP that requires a policy or the state in which you’re registered. Outside of that, once you offer advice on what someone should do with their investment or retirement accounts, you should acquire insurance.
• E&O coverage will provide the costs of defense even for claims that may be unfounded and need an attorney to determine if there is a legal liability.

What policy is right for me?

• Your policy will be determined by your gross projected revenue. Members anticipating under $250,000 will be on the regular policy, and members anticipating $250,000-750,000 will be on the enhanced policy. Members anticipating over $750,000 in revenue can work with Starkweather and Shepley directly for a custom quote.

Will I have prior acts coverage?

• Both the regular and enhanced policies include "prior acts coverage" dating back to the registration date of your firm. This is coverage for any unknown prior act which could arise to a "claim."

Are these policies compliant with Schwab and Fidelity?

• Both policies include ALL the coverages required by both Schwab and Fidelity Investments within the program.

What if I add new employees under the E&O umbrella?

• The coverage is for the firm and extends to employees, paraplanners, and independent contractors. There's no need for any adjustment.

Is cryptocurrency covered under the policy?

• Coverage for digital assets is excluded, including, but not limited to, Bitcoin, Litecoin, Ethereum, Ripple, Dash, Zcash, or Monero. However, this exclusion does not apply if the cryptocurrency is held within a registered vehicle as listed below:
  • 40 Act Mutual Fund
  • Publicly traded REIT
  • Publicly traded MLP (Master limited partnerships)
  • Publicly traded LP (Limited Partnerships)
  • Non-leveraged ETF
  • Non-inverse ETF
  • Agency-backed securities
  • FDIC-insured structured CD products
• If it is NOT excluded, as it is contained in one of these products, it is still subject to the $100,000 Per Claim/$250,000 Aggregate sublimit as it is still considered an “alternative investment.”

I am above the policy limit. Can I still use the policy?

• Yes! If you are above the policy limit, email XYPN@starshep.com to see how we can get you a customized quote.

What happens if I want to cancel my policy?

• There is a ninety (90) day Extended Reporting period for which you can submit a “claim” for up to 90 days after you elect to be removed from the program. Under “Claims made” policies, once you are removed, there is no coverage for a claim which may arise.

I'm signed up for the policy. Can I make changes now?

• Coverage changes cannot be made mid-term. Requests for changes (adding or deleting optional coverages or changing limits) will be processed at the policy’s future renewal date.

Is life insurance coverage included?

• Life insurance coverage is not included on either E&O policy, but a standalone policy is

  available through Starkweather and Shepley for interested members.

NAPA Policy Comparison

Contact

• Questions? Elizabeth Harrington and Daniel Galloway at xypn@starshep.com