Liability Insurance for Daily Money Managers

[Anonymous]

Hi Everyone – I just started my DMM business so I’m new to everything, I may even be posting this in the wrong place!

I am looking for insurance company recommendations that cover DMMs.

I am aware that Dominion (i.e. Lloyd’s of London) provides coverage specifically for DMMs and I am actively pursuing that option.

I am also looking for other carriers to get comparison quotes. Specifically I think I need:
– Professional Liability Errors and Omissions
– General Liability
– Data Breach Coverage

Does anyone have a company that they currently use to insure their DMM business that they would recommend to other DMMs?

[Anonymous]

Try Hiscox. I have used them for a few years. Prior to that I used Nationwide. General liability you can get anywhere, the E&O coverage is a little harder to come by. Prices vary a lot as they don’t know what to ask for it. Dominion was around $2,800 a year, Hiscox for same coverage is around $400.
Read what they are offering in coverage…some like to pad the coverage details with items that have nothing to do with E&O insurance like coverage for mold and asbestos exposure…for E&O? But it makes the policy look longer which makes you think you are getting more, they are just listing things to make the policy bigger so your mind thinks hey it’s worth more.
Good luck.

[Anonymous]

Thanks Cindy. Yes, I also had a little trouble getting E&O coverage. I found Hiscox and was referred by a third party to Hiscox and your recommendation of Hiscox was my final confirmation that this was the way to go. I received $1M E&O with $500 deductible for $500/yr and $1M occ and $2M agg for General Liability with no deductible for $350/yr. Both of these premiums were less than Dominion (Lloyds). Hopefully I will never need the policy but it feels good to know that I am covered.

Does anyone have an opinion on the need for a Data Breach/Infection (Cyber) coverage? In this day and age of data loss and theft it seems like a good idea.

[Anonymous]

I am brand new to DMM as well. I was under the impression that we only need the E & O coverage. Why would you get the liability?

Any help is greatly appreciated.

[Anonymous]

Kelly – I am not an insurance expert, but here is my understanding of general liability coverage:

This type of policy is designed to protect the business, otherwise known as the insured, from lawsuits or claims arising from an insured’s liability due to property damage or bodily injury.

A couple of examples of how this might occur in our line of work:

I pull into a client’s driveway, forget to put the car into park and run into the client’s car or garage, causing damage to the property.

I help an aging client down the stairs to their office to get started on paying bills. Client falls down stairs, breaks hip and claims I am responsible for the injury.

While these cases may seem extreme, I decided on general liability coverage for these reasons. Hope it helps.

[Anonymous]

I continue to get inquiries about Hiscox on a monthly basis so I am updating this thread to give more details on my policy. Before I do, here are a few disclaimers: I am not an insurance expert, this might not be the right policy or coverage for you, I am only doing what I think is best for my business as a DMM and I am open to advice and input from DMM’s who have more experience.

With that said, here is my policy:

Professional Liability Policy (Errors and Omissions)
Aggregate Limit $1,000,000
Deductible: $500

General Liability Policy
Occurrence Limit $1,000,000
Aggregate Limit $2,000,000
Deductible $0

Cost: $70.50 per month inclusive for both (not individually)

Sincerely,

Todd

p.s. Still looking for a good Data Breach/Infection (Cyber) insurance policy. If anyone has one, let me know!

[Anonymous]

Thanks everyone for the info

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