Companies that provide financial services help consumers and businesses acquire financial goods, such as a car insurance policy, a mortgage or a loan. These companies help individuals and business owners gain access to critical financial products, but they don’t necessarily sell the product. Instead, they facilitate that transaction that allows their customer to access the product. 

It’s estimated that financial services companies are responsible for about 24% of the world’s economy. They take on a huge responsibility when they advise clients about managing risk, increasing wealth and meeting future financial needs. 

What Kind of Insurance Does a Financial Services Business Need? 

Firms that provide financial services face specific risks. There are numerous regulations to meet and laws are constantly changing. Having the right types of insurance can help protect the stability of your financial services firms while helping to overcome common challenges. 

In addition to the regular property, liability and workers’ compensation insurance policies, businesses in the financial services industry may also benefit from purchasing professional liability insurance. There are several policies your agent may recommend: 

• Errors and omissions (E&O) insurance may help defend the insured company if they’re sued by a client and may help pay claims awarded to clients.

• Directors, officers and entity liability coverage (D&O) insurance can help financially protect the people serving as a company’s directors or officers from personal losses if anyone inside or outside the organization files a lawsuit alleging wrongful acts.

• Employment practices liability (EPL) coverage can help pay defense costs and damages related to employment-related claims, including discrimination, wrongful termination, retaliation and workplace harassment.

In addition to these policies, your agent may also talk with you about purchasing additional coverage to help customize your company’s insurance coverage: 


What Types of Businesses Need Financial Services Insurance? 

There are hundreds of company types that may require financial services insurance, including: 


Here’s how insurance professionals and companies fit into the financial services scene: 

• Insurance intermediaries are brokers and agencies that help match people and businesses seeking to cover common risks with an insurance provider who can meet their needs.

• Direct insurers are insurance companies that directly work with consumers to sell them an insurance policy.

• Reinsurers are companies that help insurance companies handle risks that are larger than they can handle on their own.

Get the Right Insurance for Your Financial Services Company 

Businesses in the financial services sector face several specific perils. Talk with the agents at Willian Viviano Agency serving the Charlotte, Huntersville and Mooresville, North Carolina, areas to start building your ideal insurance plan.