It’s small business week in Canada, and financial advisors should take the opportunity to review professional liability coverage, the Advocis Protective Association suggests.

“Financial advisors and planners are very good at ensuring that their clients are well covered for financial eventualities — and emergencies,” said Randy McGlynn, chair of the association’s board of directors, in a statement. “But sometimes they overlook the financial protection of their own practices. And E&O insurance is one of the most important business decisions an advisor can make to protect themselves, their business and even their family and future,” he said.

Advocis urges advisors and planners to consider how much their book of business has changed over the last year, whether their existing E&O coverage reflects the increased or decreased risk, and what risk management practices are in place.

In addition, advisors should ensure client files are neat, organized and understandable, since because improper documentation is the leading cause of successful E&O claims, according to Advocis.

“An advisor or planner also really needs to understand how the type of small business they operate impacts their need for E&O coverage,” McGlynn said.

If a small business has staff or other advisors, for instance, it may need corporate coverage in addition to individual coverage. But sole practitioners insured through the Advocis Protective Association may already have personal corporate coverage included in their individual coverage.

“It all depends on a number of factors,” McGlynn said.