The risks of the financial sector are many, and only a few carriers have the experience and resources needed for adequately insuring financial institutions. Insurers need to be familiar with the unique exposures of their clients, and these are just of few of the top risks facing banks, lenders, loan associations, brokerage firms, and other financial institutions.
Data breaches aren’t the only concerns of financial companies, as a denial of service attacks are increasing in frequency each year. Web-services and domains are sent offline for hours at a time, limiting user functions and creating chaos. Cybercrime account for lost time and productivity, a damaged reputation, and potential data leaks.
The rules and regulations governing financial transactions and operations are continually changing, leaving institutions open to non-compliance risk. Already one of the most expensive concerns for companies within the financial industry, compliance demands alterations or puts in place restrictions that banks are forced to comply with or be fined. Consumer data protection is expected to become the next target for legislative change.
In spite of all the technology and security systems available, employee theft is still a serious threat. Economic downturns make people more desperate and ambitious, increasing the risk of fraudulent activity or assisting someone else with a theft.
These common situations can destroy a financial institution. Having an insurance plan in place that includes coverage for these areas reducing the damage done to the company.