Insurance for Financial Institutions
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What Insurance Do Financial Institutions Need?
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Commercial Property Insurance will provide coverage for your properties in case damage renders them impossible to rent or lease.
Errors & Omission Insurance (E&O), is a type of professional liability insurance. It protects you from being legal claims that you made a mistake when offering your services. E&O covers your defence fees & settlement costs.
Cyber Liability Insurance protects you from the theft of sensitive data. If you suffer a data breach or software attack, Cyber Liability Insurance will cover the costs of notifying and restoring affected customers, recovering data and repairing security systems.
Frequently Asked Questions
Why do Financial Institutions need insurance?
This industry includes establishments involved in various aspects of banking. This includes businesses focused on securities and commodities exchanges, savings institutions, industrial depository banks, commercial banks, and credit unions.
Financial institutions are exposed to a wide range of risks. These risks keep changing as regulations change. There is also the inherent risk of managing other people’s money. Having insurance will protect you from the many known and unknown risks that financial institutions can face by paying for the covered expenses. This ensures that when a covered risk occurs, your business and personal assets are protected.
What risks do Financial Institutions face?
Here are some common risks financial institutions face:
- Credit risk. If a person borrows money from the bank and is unable to repay, the financial institution faces a risk.
- Failure to process transactions in time. An exchange rate is crucial, particularly for customers sending and receiving money internationally. The higher amounts sent or received, the more risks your financial institutions can face. If your financial institution is unable to process the transaction at an expected time or during a time duration, your business will be at risk.
- Operational risks like human errors, hack or data breach, and potential losses due to improper information processing.
These are just some of the many risks financial institutions can face.
How much does insurance cost for Financial Institutions?
There is no fixed cost of insurance for financial institutions as every business has unique needs and risks. Insurance carriers usually ask for the type of business, the number of employees and the coverage needed in order to get a price for your insurance policies. To find out the cost of your insurance policy, apply for a quote online or give us a call. We’ll be glad to assist you with your business needs.