Insurance for financial and legal services

Businesses in this industry should have the following covers to properly protect themselves:

Professional Indemnity Insurance: This is the backbone of risk mitigation for financial/legal services companies. As long as you operate a business within this industry, you must have Professional Indemnity Insurance. Financial and legal service firms are exposed to potentially significant liability, based on the professional advice they give, and the professional decisions they make. Whether you advise clients on M&A strategies, manage a hedge fund, or dispense legal advice, your clients can hold you legally accountable if your actions cause them losses. Professional Indemnity Insurance covers you in such scenarios. It pays for legal expenses and damages, saving you from potentially serious financial setbacks. 

Commercial Property Insurance: If you rent an office, you should protect if from major risks like fire and water damage. You probably store computers and important documents in your office. If a fire were to break out, or your ceiling started leaking water, you wouldn’t want to be left exposed. A Commercial Property policy can help compensate you for damage to your equipment and other business property.

Work Injury Compensation Insurance (WICA Insurance): WICA Insurance covers work-related injuries and illnesses, including Covid-19 infections. MOM requires WICA insurance for all workers who earn below $2,600/month, and all manual workers. Even if your employees don’t meet these legal requirements, it’s still a good idea to purchase WICA insurance for them. This is because employers are liable to pay for all work-related injuries/sickness suffered by employees. WICA Insurance will cover these expensive costs for you. 

Public Liability Insurance: If you travel to meet clients, or if you meet clients in your office, then you should consider getting Public Liability cover. If you accidentally damage other people’s property or cause injuries while running your business, you can be held liable. Public Liability Insurance covers you for legal costs like settlements/damages, and lawyer’s fees. This type of insurance is also sometimes requested for in contracts.

Business Interruption Insurance: This covers your operating expenses if you can’t run your dance studio, due to a covered reason – for instance, if a fire destroys your premises. This is a great cover to have, because it helps you to pay for costs like rent, salaries, and other overhead while you can’t generate revenue.

Cyber Insurance: This is a very useful cover for consultants. It protects you from the costs of cyber breaches. It pays for IT restoration costs. It also covers liability costs if confidential data, like customer information, gets exposed.