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Why Business Insurance is important for Financial Institutions?

The pandemic has forced us to face this generation's greatest challenges but has also allowed us to witness the best of humanity’s ingenuity. Future growth and recovery will depend on the ability of financial institutions to navigate the problems of a post-COVID world.

The world of Business Insurance is no different. Shifting workplace cultures, regulatory necessity, and the need to innovate in a stagnant industry drive the winds of change. The Insurance industry is at a crossroads–dig in and rely on entrenched practices, or allow the gust of innovation to navigate the future. BLACAZ. chooses the latter. Comprehensive, centralized, and transparent options for Business Insurance have been lacking for financial institutions and this is where we find our post-COVID opportunity.

Our unique knowledge of the finance industry, coupled with our time-honored partnerships with the industry’s best insurers, has allowed us to tailor a package to support financial institutions such as yours. Less time, effort, and cost will be spent as you navigate the risks and opportunities of your own future.

There are many insurance premiums that we offer to corporations. It is essential for all business owners to have risk management plans. By assessing and understanding the potential threats and risks your business may be exposed to, you will then be able to find the right corporate insurance for your company. Protection against potential risks is vital as it minimizes the losses that businesses may suffer from unforeseen circumstances.

Must-Have Insurance for Financial Lines

Professional Indemnity Insurance

When your business provides professional advice and services, Professional Indemnity Insurance protects your organization and yourself from any legal obligations resulting from acts of negligence.

Imagine that your clientele as an entrepreneur financial advisor is increasing but a sudden pandemic occurred and caused the market to crash, and they suffered huge losses. You face the risks of getting sued for the damages. With Professional Indemnity Insurance, it acts as a
defence for improper professional services. It is, however, different from Business Insurance and Business Insurance does not cover this protection. It is specific to professions like auditors, lawyers, accountants.

Directors & Officers

Directors and officers of corporates these days are exposed to a wide array of risks. Some of which include litigations and lawsuits against a company or its officers. Such risks may arise due to unforeseen circumstances. They are more exposed to such risks since they are accountable for complex decisions with a significant impact on the company.

For instance, if the directors risked on a new investment backed by the investors but that investment did not perform well and suffered more losses than what was anticipated. This will lead to a backlash from the investors and culminated in a lawsuit against them.

What does Directors & Officers Liability Insurance cover?

Directors & Officers Liability Insurance (D&O) includes negligence, failure to comply with regulations, misrepresentation of corporate assets, and actual or alleged breach of duty. It offers financial assistance in exchange for a standard indemnification clause that protects them from legal damages. There is also entity coverage for securities claims and employment practice liabilities. On top of that, having D&O raises risk awareness, allowing people to be conscious of the consequences of their actions.

Office Protection

Office Protection is a multi-line insurance solution package tailored to the specific needs of your business. With the current pandemic situation, many businesses were negatively impacted.

What does Office Protection cover?

Office Protection Insurance is a protection policy that consists of Business Interruption Insurance, and it will help the companies, especially small businesses, to cover the loss of income that they suffer. It also has public liability coverage for the legal costs and compensation of property damages to third parties.

Office Protection is more cost-effective and is an important line of defense against disruptive forces or accidents. For example, if your firm is suspended because of an accident, the business interruption insurance in Office Protection Insurance covers ongoing expenses, lost income, and wages.

Other than Business Interruption and Public Liability, it also has all risks protection against accidents like fire, explosions, theft, and other perils.

Cyber Risks

In the increasingly digital world, corporations are making digital transformations and storing enormous data on the cloud, intranet, and corporate servers. Our Cyber Insurance protects your company against risks like data leakage and cyberattacks.

Why is Cyber Insurance important?

Despite the fact that cyberattacks have been happening for decades, the number of cyberattacks has been on the rise since last year. It is getting common for your corporation to face risks for cyberattacks, especially if you are a small or medium enterprise since it may lack adequate security infrastructure. This makes it easier for hackers to steal confidential data and disrupt business operations.

Imagine you just started a consulting agency and your company experienced data leakage on the Internet because one of your employees misplaced his laptop. Your company is liable for the compensation and fines because of the data breach. This may in turn affect the credibility that your business has and cause your company to suffer more losses than you can imagine.

According to one research, 73% of the clients hesitate to do business with a company if their data is not safe, and 30% stated they would cease dealing entirely if their data was breached. It is essential even for small businesses to have Cyber Insurance. You are never too safe when guarding your corporation against cyber risks.  

Bankers Blanket Bond

The Bankers Blanket Bond covers for risks relating to fraud and dishonesty faced by financial institutions. Fraudulent acts may happen to anyone and in any company. No matter the scale of your company, it is vital to have protection against it. In the event that your business suffers losses from forgery, theft, or destruction of property, having a Bankers Blanket Bond acts as a protective shield against such risks and exposure.

Financial institutions are more vulnerable to losses caused by theft. Equipment like computers could disappear, and money in an armored car, robbed in transit. It is also common to experience forged securities loss due to the reliance on securities or forged/fraudulently altered instruments.

Why is Bankers Blanket Bond important?

Fraudulent Acts may happen to anyone and in any company. No matter the scale of your company, it is vital to have protection against it. In the event that your business suffers losses from forgery, theft, or destruction of property, having plans such as Bankers Blanket Bond acts as a protective shield against such risks and exposure.

Not sure what is best for your company?

To effectively identify the scope of your liabilities against any bad occurrences, it is important to first understand the nature of your organization and conduct a threat assessment. Interact with our experts to convey your needs and get in-depth about your corporate insurance premium and benefits.

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