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, 2025 - May 31, 2026 are available below:

• Tier 1 Policy
• Tier 2 Policy
• Tier 3 Policy

2025-2026 Renewal and Pricing

There are three ($1 million limit per firm) plans available in 2025-2026 based on your revenue level:

• Revenue below $250k: $159 /month
• Revenue $250k - 750k: $299 /month
• Revenue $750k - 2 million: $387 /month

Tier 1: Revenue below $250k

• Price: $159/month
• Errors & Omissions (E&O): $1,000,000 limit
• Trade Errors: $1,000,000 limit
• Alternative Investments / Covered Calls / Put Options: $250,000 limit
• Unregistered Securities / Pooled Investment Vehicles / Hedge Funds / ETNs: $250,000 limit
• Cyber Liability: $250,000 limit
• Social Engineering Fraud: $250,000 limit
• Theft: $100,000 limit
• Deductible: $10,000
• The policy includes "prior acts coverage", providing protection for services dating back to the registration date of the firm regardless of when your insurance effective date is
• Coverage applies to the firm and all advisors
• Meets professional insurance requirements set by Charles Schwab and Fidelity

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

• Price: $299/month
• Errors & Omissions (E&O): $1,000,000 limit
• Trade Errors: $1,000,000 limit
• Alternative Investments / Covered Calls / Put Options: $250,000 limit
• Unregistered Securities / Pooled Investment Vehicles / Hedge Funds / ETNs: $250,000 limit
• Cyber Liability: $250,000 limit
• Social Engineering Fraud: $250,000 limit
• Theft: $100,000 limit
• Deductible: $10,000
• The policy includes "prior acts coverage", providing protection for services dating back to the registration date of the firm regardless of when your insurance effective date is
• Coverage applies to the firm and all advisors
• Meets professional insurance requirements set by Charles Schwab and Fidelity

Tier 3: Revenue between $750k and $2M

• Price: $387/month
• Errors & Omissions (E&O): $1,000,000 limit
• Trade Errors: $1,000,000 limit
• Alternative Investments / Covered Calls / Put Options: $500,000 limit
• Unregistered Securities / Pooled Investment Vehicles / Hedge Funds / ETNs: $500,000 limit
• Cyber Liability: $250,000 limit
• Social Engineering Fraud: $250,000 limit
• Theft: $100,000 limit
• Deductible: $10,000
• The policy includes "prior acts coverage", providing protection for services dating back to the registration date of the firm regardless of when your insurance effective date is
• Coverage applies to the firm and all advisors
• Meets professional insurance requirements set by Charles Schwab and Fidelity

Optional Coverage Add-Ons

• Divorce Financial Consulting: $500,000/claim
  • Tier 1 $22/month
  • Tier 2 $22/month
  • Tier 3 $22/month
• Tax Preparation Services: $500,000/claim
  • Tier 1 $22/month
  • Tier 2 $22/month
  • Tier 3 $22/month
• Directors & Officers / Management Liability (D&O):
  • $500,000/claim | Tier 1 $22/month
  • $500,000/claim | Tier 2 $22/month
  • $1,000,000/claim | Tier 3 $44/month

Tax Preparation Coverage includes:

Coverage for the preparation of Federal and State Tax Returns.

Divorce Financial Consulting Coverage includes:

Extends coverage as a Certified Divorce Financial Analyst, or if you perform or plan on performing Expert Witness work, Divorce Mediation, or assisting in preparation of a Qualified Domestic Relations order.

D&O/Management Liability Coverage includes:

This optional endorsement provides protection for directors, officers, managers, and business entities against exposures related to governance and management decisions. It includes defense and investigation costs in the event of a regulatory formal investigation.

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 11:59 PM ET on the 19th of the current month. Applications completed on 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.

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 11:59 PM ET on the 19th of the current month. Requests submitted on 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 Tier 1, members anticipating $250,000-750,000 will be on Tier 2, and members anticipating $750,000-2M will be on Tier 3.
• Members anticipating over $2M in revenue can work directly with Starkweather and Shepley 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?

• All policies include the coverages required by both Schwab and Fidelity Investments.

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?

• Members anticipating over $2M in revenue can work directly with Starkweather and Shepley for a custom 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