Cyber Liability Insurance
Why you need Cyber Liability Insurance
June 7, 2018

Are you a Financial Advisor? You need Professional Indemnity Insurance

Professional Indemnity Insurance

Professional Indemnity Insurance

Being a financial adviser is all about giving advice. Working in this industry requires a high level of honesty and integrity and to operate professionally with complete transparency. However, the provision of financial advice can be a legal and regulatory minefield. You need Professional Indemnity Insurance.

There isn’t just negligent advice to consider; there’s improper use of client information, failure to execute a transaction risk, potential loss of documents, breach of trust and regulatory changes to name a few…

Professional Indemnity Insurance is essential.

Professional Indemnity Insurance is the most important insurance policy for financial advisors.

Exposures vary considerably depending on the vast array of unique characteristics inherent within today’s investment service firms. Contingent on the nature and scope of the service they provide; previous track record with respect to providing returns to investors; and on the type of clientele that they service, needs to be taken into account. The ASIC regulatory Guide RG126 provides some minimum guidelines and may be complemented by specific association accreditation requirements it is important to consider your own unique circumstances in terms of levels of coverage provided by your insurance program.

Insure yourself in a changing world

Financial advisers need an insurance solution that is strong and flexible in order to protect them from legal liability, provide adequate defence costs, and other emerging risks such as new cyber and privacy legislation requirements or intellectual property constraints. Those with existing policies run the risk of their liability being greater, with the advent and ubiquity of crimes such as cyber-attack, data fraud and social engineering activities, which are likely not to be covered by out dated Professional Indemnity policies.

Products like Commercial Crime Insurance, Directors and officers and Cyber Liability Insurance are a few policies that are becoming more and more of a necessity in today’s online environment.

Protect your business’ reputation

It is important to remember that Professional Indemnity Insurance doesn’t just protect you from financial loss associated with third-party claims. It is also an invaluable tool in protecting your and your firm’s reputation. With many new global insurers able to provide more capital for the investment managers insurance market. It’s a great time to re-evaluate your existing Professional Indemnity Insurance arrangements.

Contact us today to make an appointment with a local Broker at FD Beck.

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