Financial institutions vary. Banks, mortgage lenders and investment companies all have different tasks. However, each one has to promise to keep the customer’s money safe. There is always a risk when it comes to other people’s money.
If a peril compromises the integrity of your group, you likely have to answer to your customers. You will also need to take steps to make sure that compromising events do not happen again.
With the correct business insurance and the right precautions, you can safeguard your financial institution.
Common Safety Precautions for Financial Institutions
Before you have to use insurance, take steps to protect your financial institution. Doing so greatly reduces your chances of ever having to use your insurance in the first place.
- Follow all banking laws. Most institutions have to take very specific security steps. That way, they can ensure that financial information has proper protection.
- Scrutinize your employment practices. Hire professionals who can perform their duties with little risk of making mistakes.
- Institute strong security systems to safeguard financial information. These may include safes and digital security systems.
- Keep security personnel on hand at all times. These may include security guards, cyber security experts, and others to guarantee safety.
Insurance Options for Financial Institutions
Even with advanced security, there is always a chance of an insurance risk. Various types of business insurance can protect the financial institution. These may include:
- Commercial property insurance: If someone breaks into your institution looking for money, they might leave damages. Property insurance can help you recover losses from the damage. It might also pay for you to institute security reforms to prevent further incidents.
- Cyber liability insurance: There is always a chance that a cyber-attack could compromise customers’ financial privacy. Cyber liability insurance can help you with many aspects of damage control. This might include actions like credit monitoring and customer notifications.
- Errors and omissions coverage: Your employees, no matter how professional, could always make mistakes that lead to financial problems for clients. If your institution’s financial advice damages a customer’s assets, this insurance could help you compensate customers for these damages.
- Umbrella insurance: Your business likely carries a strong general business insurance policy. However, situations may arise that exceed the coverage limits of this policy. Umbrella insurance could help you cover extra losses not covered by standard insurance. It could also help you get more coverage for already-defined policies.
Taking proper care of your financial business means having the correct insurance coverage. Work with your insurance agent to get the right amount and type of coverage.
We’ve got you covered. We can help you get comprehensive coverage for your financial institution. Call us at 317.398.9797 for more information or a fast, free Muncie IN business insurance quote.