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Financial Institutions Insurance
Tailored coverage for financial services professionals
This coverage provided and serviced by affiliated and third-party insurers.. Read more
Customize an insurance policy to meet your financial institution's needs
In the financial services world, you're exposed to potential risks every day, from managing assets and advising clients to complying with changing laws and regulations.
At Progressive Commercial, we understand the challenges financial service professionals and institutions face. You can count on us for industry expertise and solutions that help keep your business and reputation safe. That way, you can stay focused on putting your clients first.
What is financial services insurance?
Insurance for financial institutions is business insurance that helps protect professionals who give investment advice, manage money, and work with sensitive information. These customizable coverages can support you against claims of mistakes, cyber threats, negligence, and more.
Depending on your policy, this type of insurance can bring together coverages that address the unique responsibilities of financial work, including client trust, data security, and regulatory expectations. It gives businesses a structured way to manage risk and maintain stability as they navigate day-to-day operations.
Why do financial institutions need insurance?
Giving clients advice about money is a big responsibility that comes with unique risks. A key benefit of financial services insurance is protecting you when something unexpected happens so you can recover quickly.
Having financial institution insurance isn't just a smart way to manage risk, it's often required. Depending on your business, you may need specific types of insurance to meet state or federal regulations, such as professional liability or workers' compensation.
Professional associations, licensing bodies, and client contracts may also require you to have coverage. Providing a certificate of insurance (COI) to clients and others confirms you're covered. With Progressive Commercial, you can get a COI quickly and easily.
Who needs financial institutions insurance?
A wide range of professions can benefit from the protection that financial services insurance provides, including:
- Financial advisors and planners
- Banks and credit unions
- Investment consultants
- Wealth managers
- Accountants and CPAs
- Retirement specialists
- Mortgage brokers
- Insurance agents
Whether you're offering financial advice as a sole proprietor or building a startup fintech solution, you should consider financial services insurance to keep your business moving forward. Progressive Commercial offers tailored policies to match your needs, and our specialists can help you find a plan that fits the way you work. Get started with an online quote today.
Types of insurance for finance service professionals
Insurance for financial companies can include basic coverage, like liability, along with more specific protections for the risks your business faces. Understanding how these options work can help you make informed choices. See what types of insurance can offer the security you need.
General liability (GL)
Covers third-party injury and property damage
General liability (GL)
Covers third-party injury and property damage
General liability insurance protects your business if you accidentally injure someone or damage their property. It can also cover claims of libel, slander, or copyright infringement. Learn about the benefits of GL and how much general liability costs.
Example: A customer slips and falls on a wet floor in your lobby and hurts their back. General liability could help cover their medical bills, as well as legal costs if they file a claim against your business.
Business owners policy (BOP)
Combines liability and property coverage in one flexible policy
Business owners policy (BOP)
Combines liability and property coverage in one flexible policy
A business owners policy combines liability and commercial property coverage. It can protect your building, computers, furniture, supplies, and other company assets. A BOP also includes business interruption coverage to help offset lost income and temporary expenses if your operations are disrupted.
Example: A fire damages one of your financial branches, forcing it to shut down temporarily. A BOP could cover the repair or replacement of damaged equipment and furnishings, as well as lost income during downtime.
Professional liability
Protects against mistakes, wrong advice, and negligence
Professional liability
Protects against mistakes, wrong advice, and negligence
Professional liability insurance, also called errors and omissions (E&O), covers legal fees for claims of negligence, misrepresentation, and other errors, even if you're not at fault.
Example: You recommend an investment strategy that results in a significant loss to your client. They sue you for negligence, claiming you gave poor advice. Professional liability insurance for financial institutions could help cover related legal expenses and settlements.
Workers' compensation
Protects employees injured on the job
Workers' compensation
Protects employees injured on the job
Workers' comp insurance provides financial support for employees who get injured because of their job, whether in the office or at a client's location. Most states require it. Review your state's workers' comp rules to see if you need coverage.
Example: You send an employee to visit a client, and they get injured in a car accident on the way. Because the incident was work-related, workers' comp might help with their medical costs and lost income.
Cyber
Protects against cyberattacks and data breaches
Cyber
Protects against cyberattacks and data breaches
Cyber insurance helps your business recover from digital threats and data breaches. It's especially important for firms that handle customer information because it can cover costs related to data recovery, legal fees, and investigations. Learn more about what cyber insurance costs.
Example: A ransomware attack locks your brokerage firm out of your customer database. Cyber insurance can cover ransom payments, investigation costs, data recovery, and system restoration.
Dishonesty and fraud protection
Companies that handle money or sensitive information can face internal risks, too. Employee dishonesty insurance helps your business recover from losses caused by theft, forgery, or other intentional misconduct by workers. It can support you and your clients if there's an issue on your team.
How much does insurance for financial institutions cost?
The cost of business insurance for financial service companies will vary depending on the level of risk. For example, a solo advisor may pay less than a mid-sized investment firm with several employees.
Insurers often use the following factors to determine your rate:
- Business type and size
- Number of employees
- Business location
- Coverage limits
- Deductibles
- Claims history
To see how much financial services insurance may cost, start your free customized quote.
Why choose Progressive Commercial for financial services insurance
For more than 50 years, businesses have trusted us to provide customized insurance at competitive rates. Our experts can help you find the right coverage for your financial services business, whether you're a solo advisor or a growing firm.
We offer flexible options and industry expertise. Get started with an online quote today.
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