Insurance for Financial Services Companies

What it covers:
This coverage protects your organization from lawsuits, fines, and penalties arising from a hacking attack or data breach. It can also reimburse the company for its direct expenses, such as breach notification costs, credit monitoring, data restoration, and forensic analysis.

Why you need it?:
If you collect any personal or organizational information, have a “login” feature on your site, integrate with another organization’s systems in any way, have employees who could fall for phishing scams, generate online content (i.e., blog posts), or rely heavily on email communications, you need cyber liability insurance.

What it covers:
Also referred to as “Errors & Omissions” or “malpractice” insurance. It covers financial services companies if an act, error, or omission committed in the course of the company’s performance of professional services is alleged to have caused a financial loss for a third party.

Why you need it?:
Complex litigation is expensive, and there’s a lot to go wrong for financial services companies in particular. The policy responds to the threat of professional service disputes by paying legal fees and judgments or settlements that result from a lawsuit for an alleged failure in the provision of professional services.

What it covers:
Building coverage protects properties that are owned, while business personal property coverage reimburses for covered damages to the contents of a building. Lost income and extra expenses caused by a covered loss can also be addressed by business interruption coverage.

Why you need it?:
Any company with a physical presence runs the risk of their tangible property being damaged or destroyed. If you hold large amounts of inventory or own equipment, you’ll often have a lot at stake. On top of that, renting temporary office space after a fire is a surprise cost that no business needs to navigate.

What it covers:
It protects the company from loss caused by specific legal activities. Unlike many other commercial insurance policies, it has nothing to do with defending against third-party lawsuits. Instead, this policy reimburses the company for losses of money, securities, or tangible property directly experienced.

Why you need it?:
Most businesses are exposed to the risk of criminal activity. This insurance protects your company from crimes committed within the company and crimes committed by people or other factors outside of your company. Common claims include:

• Employees stealing money from the company or clients.
• Inadvertently accepting stolen credit cards, counterfeit credit card numbers, or payments from unauthorized users.
• Non-employees stealing from the company’s office or the premises of the company’s bank.
• Computer and wire transfer fraud.