Group E&O Insurance Benefit Launched for Garrett Planning Network Members

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The Garrett Planning Network added a new, discounted, group errors & omissions insurance program for financial planners to its long list of member benefits.

A low-cost program specifically for advisors who only provide financial planning advice is unprecedented.

The Garrett Planning Network and Lockton Affinity have created a unique and cost effective program that caters to the lower risk, advice-only financial planning practices of Garrett’s members.

“Historically, hourly financial planners have had to pay the same, higher costing premiums for their professional liability insurance as those also managing investment portfolios and placing trades,” said Network founder, Sheryl Garrett. “A low-cost program specifically for advisors who only provide financial planning advice is unprecedented.”

The program, available exclusively to Garrett members, boasts premiums that are typically $500 to $700 per year lower than comparable individual policies. Provided by Markel Cambridge Alliance, the group policy is available on an individual firm basis to Garrett members with annual revenues of less than $150,000. Members with revenues that exceed $150,000 must go through individual underwriting to receive discounted rates under this program.

Members providing advice-only services and not managing assets receive $1 million of individual coverage with a $5,000 per claim deductible for a $1,000 annual premium. Garrett members that currently have E&O insurance, no matter their current carrier, will have "prior acts coverage," and the group policy also contains the "right and duty to defend" clause that Markel has always offered. Garrett members who also provide asset management services can still get discounted coverage under the new program with an increased premium of $1,500 for the same coverage amount. The policy even includes E&O coverage for tax preparation up to $100,000 per claim.

Lockton Affinity vice president Tom Schrandt added, “the Garrett Planning Network’s pure fee-only, fiduciary advice model always puts client’s interest first, which we leveraged into significant discounted E&O rates. Most notably, Sheryl Garrett’s disciplined new member acceptance guidelines and requirements, as well as her ‘best-in-class’ industry reputation made my job quite easy. At the end of the day, we had multiple carriers lined-up and very interested to partner with Garrett.”

30 members advisors have already signed up for the new group E&O plan, which was rolled out in late December. Abby Kovach of Abby Kovach Financial Planning, LLC in Erie, CO, a Garrett member since 2008 was one of the first to enroll. “All I can say is, ‘Wow.’ You just cut my cost of E&O to less than half of what it was for essentially the same coverage. This is so super fantabulous,” Kovach responded.

Founded in 2000, the Garrett Planning Network has grown into a national network of hundreds of hourly-based, Fee-Only financial planners. The Network’s mission is to help make competent, objective advice accessible to all people. A staff of five full-time employees and a host of professional coaches, consultants, and other subject matter experts provide the support necessary for member advisors to build and thrive in their own financial planning practices. Garrett member advisors are provided with tools and templates, as well as, training and access to hundreds of continuing education events. However, the lifeblood of the Garrett Planning Network is the advisor members. They are an incredibly vibrant, supportive, connected group of professionals of diverse backgrounds who’ve come together for the greater good and well-being of their clients and themselves. Imagine tapping into the collective wisdom of hundreds of experienced, educated, thoughtful, creative minds – that is the essence of the Garrett Planning Network.

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Dylan Ross
Garrett Planning Network
+1 (913) 268-1500 Ext: 104
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