Can a Financial Advisor or Stockbroker get Bonded?
Jason M asked:
Can a Financial Advisor or Stockbroker get bonded? I currently have E&O insurance through my firm, but it will only cover so much. Would it be a good idea to have myself bonded? In this market and in this financial environment clients and individuals are quite nervous, and it can be a financial nightmare if a client comes after you for compensation of losses or possibly suing you. Would it be a good idea to protect myself as an individual and have myself bonded? Is it even possible to have myself bonded? Any feedback would be greatly appreciated. Thank you.
Las Vegas Financial Advisor
Can a Financial Advisor or Stockbroker get bonded? I currently have E&O insurance through my firm, but it will only cover so much. Would it be a good idea to have myself bonded? In this market and in this financial environment clients and individuals are quite nervous, and it can be a financial nightmare if a client comes after you for compensation of losses or possibly suing you. Would it be a good idea to protect myself as an individual and have myself bonded? Is it even possible to have myself bonded? Any feedback would be greatly appreciated. Thank you.
Las Vegas Financial Advisor
Las Vegas Financial Adviser
yes but would the cost off set the risk — you will have to talk to an agent to find out!!!
Las Vegas Financial Adviser
The only sort of bond you may be able to purchase is a fidelity bond. They cover your clients against your stealing funds.It really is not for self protection, since they payout upon arrest and conviction.
Most fidelity bonds are easily written and require neither qualifications nor credit. They are relatively inexpensive. This bond protects your customers from theft by you or your employees.
A Business Service Bond is very similar to insurance. It protects your clients in the event an employee is arrested and convicted for stealing from them. You will not be expected to cover the loss.
The rates are based upon the number of employees and the amount of coverage. They range from a $5000 bond with less than 5 employees at $100 to a $100,000 with 25 employees less than $800.
These are instant issue bonds are readily available on the internet or through your local insurance agent. You can run a Google search for Janitorial Bond and find a site that has on line submissions. One of those sites processing on line applications is.
You can get more information on this bond and a link to the application at