What is excluded from insurance for financial institutions?

We will be able to advise but it’s worth knowing that:

• Some insurers will exclude unregulated investment products or offshore investments.
• Whilst not usually relevant to financial services unless you have an independent financial adviser or advisory department, in recent years insurers have been very concerned with advice on defined benefit pension transfers.
• Most policies will exclude claims in the USA and Canada and some insurers will restrict to UK claims only. More obvious exclusions are fraud, unless the fraud relates to an employee acting without consent or knowledge of directors and managers.
• Many insurers will ‘aggregate’ coverage meaning insurers will apply a policy cap to all claims. This can restrict cover significantly. For example, you may purchase £1,000,000 professional indemnity, £1,000,000 crime and £1,000,000 directors’ and officers’ insurance, but the insurers will apply an overarching policy limit of £1,000,000 meaning the total for all such claims will be £1,000,000 throughout the policy period. The result is £1,000,000 professional indemnity insurance can exhaust the cover, leaving directors with no cover. Sometimes, you’ll only be offered aggregated cover but with separate policy limits for each module (professional indemnity, crime and directors’ and officers’ insurance). If this is affordable it’s an approach that should be carefully considered.