Insurance for fintech companies is usually purchased in a package or portfolio. This means the financial lines insurance form part of a single package with a single insurer. This is particularly common for small and medium-sized companies.
The most common package combines professional indemnity, crime insurance, directors’ and officers’ insurance and cyber insurance. Recently, some insurers have started to offer public and employers’ liability too, and in some cases office and computer equipment extensions.
We advise you get professional indemnity, cyber and directors’ and officers’ insurance as a minimum. In fact, depending on your Financial Conduct Authority (FCA) permissions, professional indemnity might be compulsory.
Depending on whether you handle client funds on your own platform, crime insurance might or might not add value. We can help advise you.
Whatever you decide, it’s crucial you use the same insurance provider for both professional indemnity and cyber insurance. If something goes wrong with your platform or software, related to a cyber-attack, it can result in complaints from clients too but having the same provider handling the cyber and professional indemnity claims will help protect your business.
In recent years, we have seen an increase in claims, in part driven by social media and campaigns by some law firms, often referred to as ‘claims farmers’. These campaigns, previously focused on large investment providers are now targeting companies of any size.
