Financial Advice NZ Professional Liability Programme
We are pleased to bring to you the Financial Advice NZ Professional Liability Insurance Programme in partnership with Curated Risk. This programme has been enhanced for the 2022 renewal and we believe we are delivering to you a dynamic, modern relevant professional liability insurance programme for your consideration.
There are three distinct parts to the programme being: Professional Indemnity Insurance, Management Liability Insurance and Cyber Risk Liability Insurance. We consider the programme will provide you and your FAP with the cover you require to provide financial advice in the new regime.
Highlights of the programme include:
• It is tailored to your specific requirements as an adviser. We have recognised there are different types of advice and have structured the insurance product and premium accordingly.
• We are seeking to build new long term partnerships with two insurers who are new to the programme.
• The two new insurers on the programme are Ando and Berkshire Hathaway. Ando will provide capacity for the Mortgage, Life and Health and KiwiSaver advice liability insurance. Berkshire Hathaway will provide the programme for advisers who offer Investment advice.
• These insurers have the experience in financial intermediaries and their underwriting capacity has significant financial strength.
• We have unlimited access to cover for those members that provide Fire and General Advice.
• You can obtain base cover of up to $5 million; and apply for additional layers to $15 million if required.
• Curated Risk will provide advice to ensure you understand the cover being applied for and that it is fit for purpose.
Specifically in the 2022 Programme we are pleased to share with you:
Professional Indemnity Insurance
The programme is in two parts depending on the advice which your FAP provides.
Part 1: Mortgage, Kiwisaver, Risk and Fire & General Advice:
• The insurer for this part of the programme is Ando with Lloyd’s as the underwriter.
• Limits of Indemnity available $1m, $2m, $3m, $4m and $5m standard with Defence costs in addition to your limit of indemnity.
• The policy extends to you having cover for PR consultants to protect your reputation as a direct result of a valid claim.
• Cover available for Fire and General insurance advice rather than limited to referral only or a percentage of your advice.
Part 2: Investment Advice:
• The insurer for this part of the programme is Berkshire Hathaway Specialty Insurance.
• Limits of Indemnity available $1m, $2m, $3m, $4m and $5m with Defence Costs to $1m.
• Investment fluctuations write back cover can be purchase as additional cover.For both programmes:
• Retroactive date: the new insurers are able to match your current date.
• The policies contain an Automatic Reinstatement.
• Covers all areas of financial advice which your FAP provides.
Management Liability Insurance
This cover is provided by Ando – Directors and Officers Insurance is being underwritten by Lloyd’s and the balance of the management liability underwritten by The Hollard Insurance Company Pty Limited. Features of this cover are:
• Cover includes General, Statutory, Employers Liability with Crime, Legal Prosecution and Defence Costs cover along with Directors and Officers Liability.
• For sole advisers, or Class 1 full licences who require only General & Statutory Liability we have this option.
Cyber Risk Liability Insurance
This cover continues to be provided by NZI Insurance. As Cyber Resiliency becomes a larger focus for financial advisers this provides an accessible cover which is widely adopted across financial adviser programmes in New Zealand. Features of this cover are:
• Limits of Indemnity available $500,000, $1m, and $2m.
• Excess options based on fee income to your FAP.
• Social Engineering Fraud is an optional extension which can be purchased.
Changes you need to be aware of from the 2021 Scheme:
• Depending on the composition of your advice and revenues, there may be a slight premium increase.
• You will no longer be able to have monthly premiums payments through the Association as a direct benefit of the scheme – however we have negotiated competitive financing pricing to allow for monthly premiums with an independent NZ owned premium financing company.
• You can obtain unlimited Fire and General Cover.
• DIMS can be covered with additional underwriting.
Financial Advice NZ continues to acknowledge the importance of having a strong, sustainable, and effective liability programme. We are confident that our programme is unique and allows our members to implement the right protection for their business.
We will be actively working with Curated Risk over the next 12 months to develop the programme further provide opportunities for members to better understand the cover that they have and looking at new initiatives we can add to the programme.
The How and When
The 2022 programme uses a new process and online tools rather than the expiring platform, the technology will be accessible and have a simpler user interface.
Curated Risk will utilise a Risk Evaluation tool to gather details of your Financial Advice Provider practice, the question set will be dynamic to the types of advice you offer.
On completion of the initial Risk Evaluation Curated Risk will deliver a recommendation and programme summary for your review and consideration.
Confirming acceptance of the programme will be done through a placement link allowing surety of the cover which you have.
Invoicing will come direct from Curated Risk and be able to be paid annually online, or through a Premium Financing arrangement which is bespoke to Financial Advice New Zealand members from an NZ owned and operated independent premium financing company.