Directors’ and Officers’ Liability Insurance for Fintech Companies
The insurance helps protect the officers against personal claims against them filed by third parties for negligence in the management and supervision of the business. This insurance often comes up as a requirement in investment agreements, so examining the insurance section with an insurance agent/lawyer specializing in the field is recommended.
Key Man Insurance
This insures the key people in the organization against the event of death or disability, which will cause their work to stop prematurely. In this case, the policy will pay the company a one-time financial compensation, which will protect the company against future loss of profits due to the death of one of the key people in the organization.
Errors and Omissions Insurance
The most important policy for fintech companies, which offer systems that give financial advice to customers or provide financial services. Unlike directors’ and officers’ insurance, professional liability insurance protects the company itself from claims filed by a third party for negligence in the provision of its professional services. Fintech companies have unique exposures, on the one hand the financial activity exposure and on the other, the technology failure exposure. Therefore, Fintech companies should work on obtaining a comprehensive professional liability insurance which covers these exposures. Many clients require this insurance as a condition for starting work.
Crime Insurance
This insurance covers claims by third parties for loss caused by theft committed by the company’s employees of money and/or securities. Also, the policy has third-party coverage, which also covers the company for losses caused by the embezzlement. In fintech companies, it is very important to make sure that the coverage is also for electoral embezzlement. Crime insurance is very common among fintech companies and usually comes from customer requirements.
Insurance For Employer-Employee Relations Claims (EPLI Insurance)
This insurance covers the company and the company’s officers because of claims against them by employees related to employer-employee relations. These are not lawsuits related to non-payment of wages, but lawsuits related to the work environment, such as unlawful harassment (for example, without conducting a legal hearing), discrimination in the workplace, and more.
Business Owners Insurance
Insurance that covers the company against loss caused by damage to the property and structure. In many policies, additional coverages can be added, as part of the policy, for example, loss of profits, third party, employer’s liability, electronic equipment, and more. This is the basic insurance, which must be taken out at the start of the activity.