Quick Answer: Cyber + E&O Bundle for Financial Advisors

Financial advisors handling client assets and sensitive financial data need both cyber liability and errors & omissions coverage. Bundling typically saves 15-25% vs. buying separately — expect $2,800-$6,500/year for a combined policy with $1M/$2M limits.

Best carriers for advisor bundles:

Chubb: Premium bundled coverage with seamless cyber + professional liability integration
Hartford: Strong mid-market option with competitive bundle pricing for RIAs under $5M AUM
Hiscox: Digital-first quoting with flexible E&O + cyber packages for solo advisors

Compare bundled cyber + E&O quotes for your practice →

Why Financial Advisors Need Both Cyber and E&O Coverage
What the Bundle Covers
Cost Breakdown by Practice Size
SEC Reg S-P and Compliance Requirements
Top Carriers for Advisor Bundles
Bundle vs. Standalone: Savings Analysis
Common Claims Scenarios
FAQ

Why Financial Advisors Need Both Cyber and E&O Coverage

Financial advisors are prime targets for cybercriminals. The SEC reported a 300% increase in cyber incidents targeting investment advisors since 2022. Meanwhile, E&O claims remain the most common lawsuit type for RIAs — client allegations of unsuitable investment recommendations, fiduciary breaches, or failure to disclose material conflicts.

The critical gap: a standalone cyber policy won't cover a client lawsuit claiming your negligent cybersecurity led to their financial loss. And a standalone E&O policy typically excludes data breach response costs. The bundle closes this gap.

→ See what your advisory firm would pay for bundled coverage

What the Cyber + E&O Bundle Covers

Coverage Area	Cyber Component	E&O Component
Data breach response	✅ Forensics, notification, credit monitoring	❌ Not covered
Client lawsuit — bad advice	❌ Not covered	✅ Defense + settlement
Ransomware attack	✅ Ransom payment, business interruption	❌ Not covered
Regulatory investigation (SEC/FINRA)	✅ Cyber-related regulatory defense	✅ Professional conduct investigations
Wire fraud / BEC	✅ Social engineering coverage	⚠️ May cover if tied to professional negligence
Client data theft → lawsuit	✅ Breach costs	✅ Resulting professional liability claims

The bundle eliminates the "coverage gap" where cyber and E&O policies point at each other during a claim. Carriers like Chubb and Hartford write both on a single policy form, ensuring no dispute over which policy responds first.

→ Compare bundled quotes from top carriers — 60 seconds

Cost Breakdown by Practice Size

Practice Size	AUM	Annual Bundle Premium	Typical Limits
Solo advisor	Under $50M	$2,800-$3,800	$1M/$1M
Small RIA (2-5 advisors)	$50M-$250M	$3,500-$5,200	$1M/$2M
Mid-size RIA (6-15 advisors)	$250M-$1B	$5,000-$8,500	$2M/$4M
Large RIA (15+ advisors)	$1B+	$8,500-$15,000+	$5M/$5M

Factors that increase premiums: custody of client assets (vs. third-party custodian), number of client accounts, past claims history, and whether you handle alternative investments.

→ Get your practice's exact premium in 60 seconds

SEC Reg S-P and Compliance Requirements

The SEC's amended Regulation S-P (effective June 2025) requires all registered investment advisors to:

Implement written incident response plans
Notify affected clients within 30 days of a breach
Maintain reasonable safeguards for customer records

Non-compliance can result in enforcement actions, fines, and reputational damage. A cyber + E&O bundle directly supports compliance by covering incident response costs (cyber) and regulatory defense costs (E&O) if the SEC investigates.

FINRA Rule 3110 similarly requires broker-dealers to supervise cybersecurity practices. The bundle covers both regulatory frameworks.

Top Carriers for Financial Advisor Bundles

Chubb — Best for high-AUM practices ($250M+). Their ForeFront Portfolio combines cyber, E&O, and D&O on a single policy form. Industry-leading claims handling and no coverage gaps between policy sections. Typical bundle: $5,000-$12,000/year.

Hartford — Best value for mid-market RIAs. Their CyberChoice + Professional Liability package offers competitive pricing with broad coverage for practices under $500M AUM. Strong financial strength (A+ AM Best). Typical bundle: $3,200-$7,000/year.

Hiscox — Best for solo advisors and small practices. Fast online quoting, flexible limits, and affordable entry-level pricing. Their professional liability form includes embedded cyber coverage. Typical bundle: $2,800-$4,500/year.

Cowbell — Cyber-specialist option that partners with E&O carriers. Best if you already have E&O and want to add best-in-class cyber with continuous risk monitoring. Typical cyber add-on: $1,500-$3,500/year.

→ Compare all four carriers side-by-side for your practice

Bundle vs. Standalone: Savings Analysis

Approach	Annual Cost (5-advisor RIA)	Coverage Gaps?
Standalone Cyber + Standalone E&O	$5,800-$7,200	Yes — claims falling between policies
Bundled Cyber + E&O	$4,200-$5,500	No — single policy form
Savings	$1,200-$1,700 (18-24%)	Gap eliminated

Beyond cost savings, the bundle simplifies administration: one renewal date, one claims process, one carrier relationship. For busy advisors, this operational simplicity matters.

Common Claims Scenarios for Financial Advisors

Scenario 1: Business Email Compromise (BEC)
A hacker spoofs your email and instructs a client to wire $180,000 to a fraudulent account. The cyber component covers the forensic investigation and client notification. The E&O component covers your defense if the client sues for negligent security practices.

Scenario 2: Ransomware During Tax Season
Attackers encrypt your client database in February, demanding $50,000 in Bitcoin. The cyber policy covers ransom negotiation, payment (if authorized), system restoration, and business interruption losses during the 5-day outage.

Scenario 3: SEC Investigation After a Breach
Following a data breach exposing 2,000 client SSNs, the SEC opens a Reg S-P investigation. The cyber policy covers breach response costs ($400,000+). The E&O policy covers SEC defense costs and potential fines.

Frequently Asked Questions

Do I need cyber insurance if I use a third-party custodian like Schwab or Fidelity?
Yes. The custodian's insurance covers their systems, not yours. If a breach originates from your office network, email, or CRM, you're responsible for the response costs and any resulting client lawsuits.

Does my E&O policy already include cyber coverage?
Some E&O policies include a small cyber sublimit ($25,000-$100,000), but this is inadequate for a real breach. Average breach costs for financial services firms exceed $500,000. A dedicated cyber component with $1M+ limits is recommended.

What's the minimum coverage I should carry?
For most RIAs: $1M cyber / $1M E&O at minimum. If you manage over $100M AUM or handle custody, consider $2M/$2M or higher.

Ready to protect your advisory practice? Compare quotes from Chubb, Hartford, Hiscox, and Cowbell — get your free bundled quote in 60 seconds.

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