Insurance for Fintech Companies

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Overview

Financial Technology (Fintech) is an industry-focused on the application of modern and evolving technology to traditional financial services. If your company process credit card transactions, enables crowdfunding or transferred funds to another bank account through a mobile banking app, you can be considered as a Fintech company. Or maybe you’re even involved in blockchain and digital wallets, some of the most exciting Fintech exciting advances in decades. Front-end or back-end, it doesn’t matter. The goal of Fintech is to move the entire industry forward.

What are we not talking about? Banks, investment vehicles like private equity or hedge funds, insurance companies, or securities broker-dealers. While some within these spaces exhibit every quality of a “Fintech” company, these are all considered “financial institutions” in the insurance world and, as such, present unique coverage concerns.

Why is Insurance for Fintech Companies Important?

Fintech companies are often required to protect themselves from other companies in their space. Competition is fierce in this industry, thanks in no small part to the combination of a crowd of new entrants at the bottom and a stable of defensive, M&A-hungry behemoths at the top. This creates a risky environment both in terms of customer acquisition/retention as well as the threat of unfair trade practice or IP litigation from competitors. Policies such as directors & officers, errors & omissions, and IP insurance can address many of these concerns.

Since the main function of these companies is to provide a professional service, few policies are more important than professional liability (errors & omissions) insurance. If a customer or affiliate claims they lost money as a result of your mistake, a lawsuit can soon follow. We’re all human and errors happen, but with Fintech, those errors can be both costly and easily traceable. An E&O policy is a common-sense protective measure to help these companies manage risk.

Data Breach

When sensitive information is data is copied, transmitted, viewed, stolen or used by an individual unauthorized to do so. The Equifax Breach in 2017 that leaked 145.5m customers accounts (including social security numbers) was due to a server security patch that was not implemented.

System Failures

By nature Fintech companies are heavily reliant on back end systems and third party services providers for their frameworks, servers and data services. Any outages, downtimes or failures can result in significant losses for customers and the company. In many cases litigation can follow as a result.

Regulatory Non-Compliance

43% of Fintech sector leaders think that regulations have the potential to slow the growth of the industry. Navigating the complexity of regulatory requirements is a major risk for any Fintech company. Often operations do not fit easily into preexisting regulatory regimes, especially if you want to scale internationally.

Types of Fintech Companies that need insurance

  • Crowdfunding Platforms
  • Mobile Payment
  • Insuretech
  • Robo-Advisors
  • Regtech
  • Blockchain & Cryptocurrency
  • Stock Trading Apps
  • Budgeting Apps

How it works

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

Wil Hamory, Vice President

Meet your specialist

Wil Hamory is a Vice President at Founder Shield. Wil’s aim is to match the pace of business of Founder Shield’s innovative clientele to provide tailored insurance solutions at scale. He has been involved in the mobility industry since its infancy and assisted many of Founder Shield’s On-Demand and FinTech clients meet legal requirements while positioning them to rapidly expand.

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