| | December 20228CIOReviewIN MY OPINIONDON'T LEAVE YOUR FINTECH BUSINESS EXPOSED TO THREATRugg explains why insurance cover should be a key priority for fintech companies and how business owners can safeguard their operations with the right policyThe fintech industry arose out of a desire to change the financial services industry, where many smart individuals with innovative ideas were looking to develop and progress their concepts within the market. It's easy to imagine that insurance was probably not at the forefront of their minds.At Markel International, we first started to look at providing insurance for fintech companies back in 2015; it was a case for us of getting into the minds of those entrepreneurs, so that we could better understand their businesses and then address the potential risks that could disrupt their day-to-day operations. We identified that there were four key exposures impacting the fintech space ­ professional indemnity, directors and officers (D&O) liability, theft, and cyber liability ­ which led to Markel creating and launching a single solution policy in 2016.Prior to this insurance product launch, fintech companies had no option but to purchase separate policies for each exposure.This meant that there could be significant gaps in cover between each individual policy. In some cases, companies were not able to purchase the breadth of cover required at all.What's Included in the CoverProfessional indemnity (PI) is a key cover and usually a requirement for regulated companies. Fintech companies have a duty to act responsibly and in the best interests of clients, but occasionally errors can happen for which companies will be liable to those clients and other third parties, which can lead to claims against them. It is important for a company, therefore, to protect their reputation in the industry by being able to respond to such claims quickly and efficiently. We have seen many examples of how this could transpire. One insured company, for example, had a situation, whereby, it overlooked options to take up bonus shares on behalf of customers resulting in a loss to their clients.Protect Your Senior LeadershipD&O is another important cover for any person taking a directorship or senior management position. One of the prime aims of a D&O policy is to protect the personal assets of directors and senior managers when they are involved in litigation. This policy covers the costs involved Nick RuggBy Nick Rugg, Senior Underwriter of Fintech & Financial Institutions, Markel International
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