LIFE INSURANCE GROUPS

Life Insurance Group Insurance

Protecting advisory firms, data, and regulatory responsibility

Life insurance groups, agencies, and advisory organizations operate in highly regulated environments where client trust, data protection, and professional conduct are critical. Exposure often stems not from physical risk, but from advice, compliance obligations, and handling sensitive personal and financial information.

A properly structured insurance program helps protect firms, producers, leadership, and long-term credibility.

Key Risks in Life Insurance Group Operations

Life insurance groups face exposure related to:

• Allegations of misrepresentation or unsuitable recommendations

• Regulatory investigations and compliance actions

• Data privacy and cybersecurity incidents

• Contractual disputes with carriers or clients

• Employment practices and producer management

• Leadership and governance-related claims

Claims often arise long after policies are placed.

Core Coverages for Life Insurance Groups

Life insurance group insurance programs typically include:

Professional Liability (Errors & Omissions)
Protects against claims alleging errors, omissions, negligence, or misrepresentation in advisory or sales activities.

Cyber Insurance
Covers data breaches, ransomware, and privacy incidents involving sensitive client information.

Directors & Officers (D&O) Liability
Protects leadership from claims tied to management decisions, compliance oversight, or business operations.

General Liability
Covers third-party bodily injury or property damage claims not related to professional services.

Employment Practices Liability (EPLI)
Covers claims related to hiring, termination, discrimination, harassment, or retaliation.

What’s Commonly Overlooked

Life insurance group insurance programs are often weakened by:

• Inadequate E&O limits for long-tail claims

• Failure to align coverage with advisory scope and licenses

• Gaps between cyber coverage and regulatory exposure

• Missing coverage for supervisory or managerial activities

• Overlooking claims-made continuity requirements

These gaps often surface during audits, disputes, or regulatory reviews.

Real-World Claim Examples

• A client alleges unsuitable life insurance recommendations

• A regulator initiates a compliance investigation

• A cyber incident exposes client financial data

• A former producer files an employment-related claim

Defense costs alone can be substantial, even when allegations lack merit.

Why Proper Placement Matters

Life insurance group coverage varies significantly based on:

• Advisory model and compensation structure

• Regulatory jurisdiction and licensing

• Data handling practices

• Size and structure of the organization

Improper placement can result in denied claims or regulatory complications.

Our Approach

At Cory Washington & Co., we approach life insurance group coverage with a compliance-first, advisory-focused mindset. We align insurance with regulatory responsibility, data protection, and leadership exposure — helping firms operate with confidence and credibility.

When trust is the business, protection must be precise.