Project & Risk
Financial Lines
Unexpected financial losses
Financial lines cover losses that are financial rather than physical: a customer who does not pay, a director held personally liable, an employee who defrauds the company, or a cyber incident that stops the business.
What it covers
Trade credit
Receivables that go unpaid because a buyer becomes insolvent or defaults.
Directors and officers
Personal liability of directors and senior managers for decisions taken in their role.
Fidelity
Loss caused by employee theft or fraud.
Cyber
Business interruption, data loss and response costs following a cyber incident.
Surety and bonds
Guarantees required in tenders and contracts.
What to watch for
- Trade credit cover applies to buyers approved by the insurer, and each buyer carries its own limit.
- Disputed receivables are a commercial dispute, not an insured loss.
- Deliberate acts and known circumstances existing before inception are excluded.
- Cyber cover generally requires a minimum standard of security controls to be in place.
- These lines almost always run on a claims-made basis, so continuity of cover matters more than in other classes.
Who it is for
Companies selling on open account, businesses with a board carrying real decision-making exposure, and any operation whose revenue depends on systems staying up.
What we add as a broker
This is the least standardised part of the market, and the part where a broker earns their place most clearly. Every placement is negotiated: which buyers are approved, what limits apply, which exclusions can be removed. We do that negotiation with the underwriter rather than handing you a quote to accept or decline.
Frequently asked
Does trade credit cover every customer?
Only the buyers the insurer approves, and each one is given its own limit. Part of the value is the insurer's own view of your customers' creditworthiness, which arrives before the loss does.
Why would a director need personal cover?
Because liability can attach personally, and to personal assets, for decisions taken in the role. It is one of the few covers bought to protect an individual rather than the company.
Do we need to prove our security standard for cyber cover?
Increasingly, yes. Insurers ask about backups, access control and incident response before quoting. Getting those in order usually improves the price as well as the availability.