Fintech Company Insurance

What makes this risk different?

Underwriters need to understand the product or service, who relies on it and what could happen if it fails. For this activity, describe licensing status, custody of funds, transaction flow, banking partners, data access, outsourcing, fraud controls and countries served. Separate your own design and delivery responsibilities from those of component suppliers, installers, customers and subcontractors. Give the insurer a realistic account of maximum potential loss and any past claims or incidents.

Insurance questions to review

• Public and products liability: alleged third-party injury or property damage from operations, products and completed work, subject to exclusions and declared activities.
• Technology professional indemnity: defined professional services, software and advice exposures, often on a claims-made basis with notification and retroactive-date conditions.
• Cyber: incident response, privacy and covered network events, which may differ from a product defect or implementation error.
• Other cover: recall expense, property, stock, transit, management liability or crime where the actual operation warrants it.

Check limits, excesses, aggregate limits, exclusions, territorial and jurisdiction clauses and any contractually required insured parties. No item listed here is automatically included.

Illustrative exposure

Hypothetical example: An integration issue delays payments. Financial loss, crime, cyber and regulatory response may involve separate cover. This example describes an exposure only; a claim outcome depends on the facts and policy.

Fintech activities to disclose

Identify the actual service: payment processing, lending technology, account information, digital assets infrastructure, regtech or software supplied to licensed institutions. State who holds customer money or assets, who has transaction authority, jurisdictions, regulated counterparties and reliance on external payment rails. Describe transaction volumes, reconciliation, security controls and outsourced providers.

Operational errors, a cyber event, crime or dishonest transfer can produce different loss types. Review technology PI, cyber, crime and directors’ and officers’ cover as relevant, and check exclusions for financial services or particular digital asset activities. The description in the proposal must match the real role, not only the label fintech.

What to send for a quote

Provide a concise business and product description, turnover split by activity and country, principal contracts, customer industries, manufacturing and supplier arrangements, testing and quality processes, existing schedules and claims history. Where relevant, include technical documentation through a suitable secure follow-up channel.

Frequently asked question

Is every fintech exposure insured by a technology policy?

No. Regulatory and funds-handling activities require specific disclosure and terms.

See also software and saas, our technology insurance guide and existing quote areas.