The banking industry has been radically transformed by the advent of FinTech, and your insurance coverage needs to transform with it. It is important that financial institution insurance keeps pace with the times to protect your money and assets from these 21st-century problems.
1. Intentional Cyber Attacks
Malicious hacks or other breaches that interrupt service, steal funds or data or threaten harm are extremely damaging. Insurance coverage can pay for investigations, liability losses, and even ransom demands.
2. Program Flaws
Hardware and software aren’t perfect. If a flaw in your electronic banking system causes a loss of data or funds, insurance can cover these damages.
3. Unintentional Breeches
Sometimes a blogger or webmaster accidentally uses your copyrighted or trademarked material. Other times a vendor or employee may cause a security breach or invade the privacy of a third party without permission. Insurance can protect your institution from resulting trials or lawsuits and pay customers’ claims for damages.
Financial institution insurance should also cover the old-fashioned threats, such as natural disaster, theft, and professional liability. A qualified insurance broker can perform a risk assessment for your bank and determine the vulnerabilities that need to be addressed. A customized insurance portfolio can protect you and your company for years to come.