The question "How much insurance (limit of liability) should the RIA purchase?" stands as one of the toughest questions to answer amongst the RIA's decision and selection of appropriate professional liability (E&O) insurance. Yet, the particular question also stands as one of the most frequent and consistent queries posed to our staff by the RIA community.
This question is tough to answer; fiduciary risk is severe in nature, not frequent. Challenging, because how can one predict the future level of litigation or the overnight, unsuspected credit worthiness of our financial world?
