Financial Lines Insurance 

Cover the covert

As the owner of a business, you’re reliant on your staff to deliver your product or service, the senior management team to run the business within the confines of your policies & procedures, and the Board to ensure that you meet all statutory requirements and comply with the law.

Whilst it’s relatively straight forward to insure the obvious tangible aspects of your business such as property, vehicles, employees, products etc. there are also a host of intangible risks you face.

These risks are rarely covered by traditional policies, and so will leave your balance sheet exposed. 

The suite of policies that fall under the heading Financial Lines insurance are designed to provide you with expertise and financial support when an issue arises where there has been no physical damage or injury to the affected party.  

Our expertise in this area extends over decades, during which we have built an in-depth knowledge of the market and exposures that you face. Our clients benefit from the peace of mind that not only are their tangible exposures covered, but also the intangible too. 

The covers falling within this arena are as follows:

Directors & Officers Insurance

Provides protection for the directors and officers of your company for claims against them for wrongful acts committed solely by reason of their acting as a director or officer of a company.

Example

HSE – Breach of Health & Safety regulations following a near miss on site, results in a number of improvement notices and prosecution of the company for failing to manage their site correctly.

Employment Practices Liability 

Provides protection for your company against financial loss from claims made by employees for a wide range of employment practice violations, including unfair dismissal or discrimination on grounds of sex, race, disability, religion, belief or sexual orientation. 

Example

Unfair Dismissal – An employee was sacked for turning up late for work on a number of occasions. The employee took the company to an Employment Tribunal and won their case on the grounds of Unfair Dismissal. The company hadn’t followed their own formal disciplinary process to give the employee sufficient opportunity to understand the seriousness of their situation.

Commercial Crime 

Provides protection for your company against both internal and external threats from thieves and fraudsters which can include internal employees, external sources, or a combination of the two working together for their own personal gain.

Example

Payroll pay-out – The finance manager was responsible for processing and authorising salary payments to employees through the company payroll system. They also made additional payments from the company bank accounts into their own personal bank account at regular intervals. There was little or no supervision of their work due to the level of trust that they held within the business and the lack of internal controls enabled them to defraud their employer.

Cyber Liability 

Provides protection for your company against First-Party losses (yours) and Third-Party losses (affected persons), as a result of actions of your employees or those of hackers, causing loss or damage to your network and the data contained within. 

Examples:

1st Party Claim – Denial of service – An online retailer makes most of its turnover in small windows of time, with seasonal goods. When its e-commerce website crashes it is suspected that a competitor has used a ‘botnet’ to shut the business down during a busy period, leading to severe business interruption and substantial impact on company finances.

3rd Party Claim – Employee Error – An HR recruiter accidentally attached the wrong file when sending an email to four job applicants. The file included the HR demographic data, consisting of all current and former employee names, addresses, and national ID numbers.

Professional Indemnity  

Provides protection for your company should you have failed to provide professional services or provided services which have resulted in your client(s) suffering financial loss as a result of the service shortcomings. 

Examples

Design & Construct – The insured designed and installed the heating and ventilation for a restaurant. Post completion, air extraction and temperature control failed to work properly. The restaurant had to close pending repairs. The owners sued for the additional costs and the loss of revenue whilst the rectifications were carried out. 

Professional Services – The company produced a report for a client on restructuring their operations to lower costs. The changes directly attributable to the recommendations made have resulted in higher costs for the client and they took legal action against the adviser to recover the additional cost incurred for the poor advice. 

To find out more, please contact XXXXXXX for a no-obligation conversation on how we can help you further enhance your balance sheet protection.