Errors & Omissions Liability Insurance (E&O)

Errors & Omissions Liability Insurance (E&O)  


With Mercer Consumer’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.

Mercer Consumer,
1050 Connecticut Avenue
N.W., Suite 700, Washington
DC 20036
515-365-0375 or 515-365-0985


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

  • What is Professional Liability insurance?

    Professional Liability Insurance protects you against covered claims arising from real or alleged errors or omissions, including negligence, in the course of your professional duties. Remember, legal defense and settlement costs are paid in addition to your limits of liability.
  • Doesn’t my employer provide me with Professional Liability coverage?

    While many employers (not all) will provide some professional liability coverage, chances are that coverage may have some serious gaps, including: 

    • Policy limits may not be high enough to protect you and all of your co-workers.
    • You may not be provided with coverage for lost wage reimbursement, licensing board hearing reimbursement, and defense costs.
    • You may not be covered outside of the workplace, such as when you engage in volunteer or part-time work.
    • You may not be covered for suits filed after you have terminated your employment.
  • What would having a personal Professional Liability Insurance Plan give me?

    In the event of a lawsuit, your own Professional Liability Insurance policy would: 

    • Provide you with your own attorney
    • Pay all reasonable costs incurred in the defense or investigation of a covered claim
    • Pay you for lost wages
    • Provide reimbursement if licensing board issues were involved
    • Pay court costs and settlements in addition to the limits of liability
  • Why should I consider an individual Professional Liability Insurance Plan from Mercer Consumer?

    All the plans offered by Mercer Consumer are tailored specifically for each profession to meet your unique needs.

    The Plan is administered by Mercer Consumer and is underwritten by Liberty Insurance Underwriters, Inc. Mercer Consumer has handled the insurance needs of individual healthcare professionals, schools, universities and associations for over 55 years. As a trusted name in the Professional Liability marketplace, Mercer Consumer has earned a reputation defined by superior products and quality service.
  • How do I apply?

    Applying is just a click away! Get a no-obligation quote and apply for binding coverage instantly at

    If you prefer not to apply online, you may also request an application to be sent to your home or apply for coverage by phone. Call 1-800-503-9230 to speak to your professional liability representative today.
  • Am I eligible to purchase my medical professional liability with installments?

    Illinois Medical Professional Liability Law PA94-677, Senate Bill 475, requires insurers to implement a quarterly premium payment installment plan as prescribed by the Secretary of the Illinois Department of Financial and Professional Regulation (IDFPR). 

    If you practice in the state of Illinois and your annual medical professional liability premium is above $500, please visit for information regarding installment payment options.

    Underwritten by Liberty Insurance Underwriters Inc.,
    a member company of Liberty Mutual Insurance.
    55 Water Street
    New York, New York 10041 
    May not be available in all states. Pending underwriter approval.
  • 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 Mercer Consumer 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.

  • What other insurance products are available to broker-dealer firms?

    Mercer Consumer 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