Errors & Omissions Liability Insurance (E&O)

Errors & Omissions Liability Insurance (E&O)  


With AMBA's E&O insurance solutions, you’re in good hands:

  • Coverage for Defense Costs incurred while defending allegations of unsuitable investment recommendations, negligence, misrepresentation, failure to perform due diligence, etc.
  • Coverage for settlements, mediations, judgments or awards.
  • Coverage for Breach of Fiduciary Duty while performing Registered Investment Advisory Services.
  • Coverage for not serving in a client's best interest.
  • Specialty investments coverage, including REITs, LPs, Private Placements and M&A services.
  • Coverage for outside business activity, including financial planning and life/health/accident/disability insurance sales.
Determine Eligibility

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Exposures and Risks

Without adequate Errors & Omissions Liability Insurance, your firm and its representatives could be at risk from the following:

  • Firm's Capital Depletion — Securities firms are required by the SEC to maintain minimum net capital as outlined in SEC Rule 15C3-3. A successful client claim can impair the firm's ability to comply with the rule and to maintain its operation.
  • Personal Assets Depletion — Registered Representatives are often not entitled to indemnification by the broker-dealer firm. They also may be required to make the firm whole for losses incurred by their wrongful acts. Having E&O insurance protects both the firm and representatives, provides a unified defense and preserves the working relationships between the Registered Representatives and the firm's management.
  • Defense Cost Expenses — Legal costs associated with a defense in court and/or arbitration can be substantial. A large amount of legal bills can be incurred regardless of whether the claim was dismissed, settled or awarded.


E&O Liability Insurance can help protect your firm and Registered Representatives from claims Alleging:

  • Unsuitable investment recommendation
  • Failure to perform due diligence
  • Failure to perform a proper risk analysis
  • Breach of Fiduciary Duty
  • Negligence
  • Misrepresentation
  • Failure to Supervise


Optional Coverages

  • Trade Error/Cost of Corrections
  • REITs, LPs, Private Placements
  • 1031 Exchanges / DSTs
  • M&A Activity
  • Investment Banking
Contact Us

We're here to help! Please contact us in whatever manner is most convenient for you.

4050 114th Street
Urbandale, Iowa 50322
[email protected] 
[email protected]


Answers about the plan, including eligibility, options, enrollment, customer service and more.

  • How does E&O Insurance differ from Fidelity Bond coverage?

    An E&O Insurance policy is intended to protect an Insured from unintentional errors or omissions (such as Failure to Disclose Risk) in servicing the Insured's clients. A Fidelity Bond is intended to protect an Insured from intentional fraudulent/criminal acts (such as theft or embezzlement or forgery) by non-owner insiders (i.e. employees or Registered Representatives) or by outsiders.
  • How could Errors & Omissions Liability Insurance protect my firm?

    Errors & Omissions Liability Insurance can provide important supplemental coverage to your general liability policy. it can help protect your firm’s and your Registered Representative's assets from the costs associated with lawsuits or arbitration demands alleging errors or omissions by your firm or its Registered Representatives. E&O coverage includes legal defense costs for covered professional services. E&O Liability Insurance also pays for court/arbitration hearing costs, customer settlements, awards or judgments for covered claims, up to the coverage limits on your policy.
  • How can I learn more about the insurance products offered by AMBA and how they can best serve my firm?

    For more information or to speak with a Client Representative, please contact our office at 1-800-978-6273 or send us an email to: [email protected].
  • What other insurance products are available to broker-dealer firms?

    AMBA offers a variety of insurance products including Cyber Security Liability Insurance, Fidelity Bonds, Directors and Officers Liability Insurance, Employment Practices Liability Insurance, Property & Casualty Insurance, Mail Insurance, the Signature Guarantee Medallion Bond, 1st and 3rd Party ERISA Bonds and many more products. Please feel free to browse our site in its entirety for more information, or you may contact us directly at 1-800-978-6273.

Recent Claim Trends

Arbitration Cases Served by Controversy Involved

Most to Least

  • Breach of Fiduciary Duty
  • Negligence
  • Misrepresentation
  • Failure to supervise
  • Unsuitability
  • Omission of Facts
  • Unauthorized Trading
  • Churning
  • Margin Calls


Security Types Involved in Arbitration Cases

Most to Least

  • Listed Stock
  • Mutual Funds
  • Variable Annuities
  • Annuities
  • Options
  • Corporate Bonds
  • Preferred Stock
  • Limited Partnerships
  • Certificates of Deposit
  • Auction Rate Securities
  • Derivative Securities

Information available at