Financial institution insurance schemes are designed to provide financial coverage against unexpected loss arising due to theft, fire, natural calamities like earthquake, flood and financial institution crimes like money laundering, counterfeiting and many other unlawful activities.
The insurance policies for financial institutions usually offer two different varieties of insurance coverage. Legal Liability coverage and All Risks coverage provide the financial organizations with the necessary safeguard in case of major asset loss.
The financial organizations operating in the global market may opt for some other unconventional insurance options. The solutions of finite or captive insurance coverage are the ideal examples of self-funding exposure. Financial organizations that are less prone to asset loss can go for finite or captive insurance packages.
The insurance policies for financial institutions also provide medical coverage to the staffs of these organizations. However, these insurance policies are usually self-funded by nature.
Financial institution insurance schemes also include some special insurance policies like schemes for professional indemnity and stockbroker’s indemnity.
The insurance policies for professional indemnity basically deal with insurance coverage in case of claims made by third parties. These special insurance schemes are designed to cover the financial loss arising due to carelessness of the employees and other professionals.