What insurance is required for RIA firms?
Every firm needs insurance. Here's why.
We get it—insurance is the last thing on your mind. But by having the right coverage, you're better protecting yourself and your clients from devastating losses. We'll take you through Schwab's insurance policy, how to find the right insurance with preferred pricing, and how you can let us know your firm meets the insurance requirement.
Does your firm have the right protection?
All Registered Investment Advisor firms that work with us must carry an aggregate minimum of $1 million of insurance coverage to protect against errors and omissions, social engineering, theft by hackers, and, if applicable, theft by employees.
Let's get ahead of this
Clients: Confirm your coverage
We'll be reaching out to existing firms over time to confirm you're carrying the minimum required coverage. (In fact, that might be why you're here now.) But you don't have to wait until you hear from us.
Still weighing your options?
If you're just here exploring, know that we're committed to asset safety, which is why we're requiring that all firms carry coverage. Having insurance coverage is an industry best practice, and it's important for protecting both your firm and your clients.1
Why is Schwab requiring insurance?
While we'd like to think otherwise, fraud, cybercrime, and other risks aren't going anywhere. One event could cost you your firm's future. You'd do anything in your power to protect your clients' assets and your business, so insurance needs to be a critical piece of your risk management strategy.
Don't delay—coverage can take time
All insurance policies are customizable, so it can take as long as 90 days to find the right provider and have coverage in place for your firm's unique needs. To help you get started, we've compiled some insurance basics and a list of providers that offer preferred pricing to advisors who work with Schwab.
Want to dig deeper?
Start making calls
Find an insurance provider that can work for you with Schwab Affinity Services.™
Review insurance FAQs
You probably have questions about our insurance policy, and we have answers.
Understand the importance
In our April 2021 Compliance Review, we explain how insurance can safeguard against unknown future losses.
Step up your cybersecurity
Insurance should be one piece of a larger plan to prepare for risk events before they happen.
Clients: Ready to confirm your coverage?
We'll be in touch with existing firms over time to confirm your firm's insurance coverage. But if you already have the minimum required coverage, you can let us know now, and we won't bother you with it down the road.
Tackle what's next
If you're considering working with Schwab or going independent, understand that we're invested in your practice's success and security.
1 Schwab 2021 RIA Benchmarking Study.