Businesses and the people who lead them can face complex risks: a client alleging professional negligence, a claim against a company director, employee dishonesty or a cyber incident. Dixons Commercial Insurance Brokers helps businesses explore financial lines insurance designed around their professional services, management responsibilities and wider exposures.
Financial lines insurance is a broad term for a range of specialist policies designed to address financial and management-related exposures. It can include Professional Indemnity, Directors' & Officers' Liability, Crime, Cyber Liability and Employment Practices Liability, among other specialist covers.
These policies do not all protect against the same events. Professional Indemnity is concerned with allegations arising from professional services; Directors' & Officers' insurance focuses on claims against people in management roles; and Crime insurance addresses specified losses arising from dishonest or fraudulent acts.
The right combination depends on your activities, contracts, company structure, turnover, employees, client requirements and risk profile. We take time to understand these factors before discussing the options available from insurers.
Explore specialist insurance areas that may be relevant to your business, including professional and management liabilities and trade credit risks. Each policy has its own purpose, terms and limitations; some covers may be available as extensions or as separate policies.
For businesses that provide advice, designs, professional services or specialist expertise. PI insurance may respond to claims alleging negligence, errors or omissions that cause a client financial loss.
Directors and officers can face allegations arising from decisions and actions taken in their management roles. D&O insurance may protect insured individuals against specified claims and associated defence costs.
Cyber incidents can disrupt operations, compromise data and create unexpected costs. Cyber insurance may provide access to incident response support and cover for specified losses and liabilities.
Businesses can suffer financial losses through dishonest acts by employees or external fraudsters. Crime insurance can be arranged to address specified crime exposures, subject to the wording and security conditions.
Employment-related allegations can result in legal costs and management time. This cover may be available as part of a management liability package or as an extension, depending on the insurer.
People who act as pension scheme trustees can have specific responsibilities and potential personal exposures. Other specialist risks may include intellectual property, medical malpractice and professional-sector liabilities.
If your business sells goods or services on credit, an unpaid invoice can affect cash flow and profitability. Trade Credit Insurance may protect against eligible losses if a customer becomes insolvent or fails to pay an insured debt.
Financial lines insurance can be relevant to a wide range of organisations, from owner-managed businesses and professional practices to larger companies and specialist service providers.
A business may need more than one financial lines policy. A consultancy could face a professional negligence allegation, while its directors may separately face a claim relating to management decisions. A business that handles client funds or sensitive data may also need to consider crime and cyber exposures.
Policies can contain different definitions, exclusions, limits, excesses and notification requirements. It is important to understand how they work individually and alongside one another, rather than assuming one policy will cover every financial risk.
Insurers will usually need a clear picture of the business and the exposures you want to insure.
With over 40 years of commercial insurance experience, we believe financial lines cover should be built around the real risks and responsibilities of your business. We provide a personal point of contact and ongoing support, not just a policy at renewal.
Clear answers to some of the questions businesses ask when reviewing financial lines insurance.
Financial lines is a broad term for specialist insurance policies that address certain financial, professional and management-related risks. Depending on the business, this may include Professional Indemnity, Directors' & Officers' Liability, Crime, Cyber Liability, Employment Practices Liability and other specialist covers.
Professional Indemnity is generally designed to respond to claims alleging that professional services or advice caused a client financial loss. Directors' & Officers' insurance is designed to address specified claims against directors and officers arising from their management roles. The policies protect against different types of allegations.
There is no universal legal requirement for every company to buy D&O insurance, but directors and officers can face personal allegations arising from decisions made in their roles. Businesses should consider their governance, regulatory, contractual and operational exposures when deciding whether cover is appropriate.
No. Cover depends on the professional services insured, the policy wording, retroactive date, limits, exclusions, excess and claims notification requirements. It is important to disclose the services you provide accurately and review the policy against your contractual and regulatory requirements.
It may be available as an optional extension or within a management liability package, but it is not automatically included in every D&O policy. Check the schedule and wording to confirm whether employment-related claims are insured and what restrictions apply.
Crime insurance may cover specified financial losses arising from dishonest or fraudulent acts, such as employee dishonesty, theft, forgery or certain forms of computer and funds transfer fraud. The precise insured events, discovery requirements, security conditions and exclusions vary by policy.
Some cyber policies include cover for certain business interruption losses following an insured cyber incident, subject to the policy definition, waiting period, limits and exclusions. Not every interruption or system failure will necessarily be covered.
Premiums depend on factors such as the type of cover, business activities, turnover, company size, number of employees and directors, claims history, requested limits, excesses and insurer underwriting criteria. We can discuss your requirements and seek terms from insurers.
This page provides general information about financial lines insurance and is not a statement of cover or a recommendation that any particular policy is suitable. Cover availability, insured events and policy features are subject to insurer underwriting acceptance and the policy schedule and wording, including definitions, terms, conditions, limits, excesses and exclusions. Some covers may be offered as extensions or within package policies; others may require separate arrangements. Regulatory fines, penalties, cyber events and employment-related claims may be subject to specific restrictions or may not be insurable. Please contact us to discuss your individual circumstances.
Tell us about your business, the services you provide and the responsibilities you carry. We'll help you explore the financial lines options that may be available.
