Insurance for Financial Institutions
Helping ensure your success.
From balance sheet and personal asset protection to data security and evolving regulation, today’s financial institution risks are increasingly challenging to navigate. This makes bespoke and robust insurance coverage more critical than ever.
This is where Lockton’s expert insurance team for financial institutions comes in. As your trusted partner, we design tailored insurance programs to address the current and emerging risks your organization faces, so that you’re armed with protection as dynamic as your business.
The most successful financial institutions and their leadership teams are those that operate with the confidence to make bold business decisions. With our expert team planning for every risk and eventuality, you have the freedom to focus on what matters most – steering your organization towards success while your key people are confident that they have the requisite protections.
The Lockton difference
Client-first culture
For nearly 60 years, our independence has ensured that we don’t answer to shareholder demands or private equity investors, unlike our competitors. Every Lockton Associate has a single-minded focus: you, our client. This approach gives our partnership with you the best chance at success and serves as the critical element to maintaining a client retention rate of 97%.
Free from rigid corporate structures, we have a unique culture that nurtures an environment where ideas and creative problem-solving are central to continually improving your business resilience.
Global reach, local touch
With Lockton, you will benefit from the reach and experience of a global organization, and a team of passionate insurance professionals with broad and deep experience in the financial institutions industry.
Thanks to our reputation as one of the leading insurance brokers within the financial services sector, we maintain a significant position with all major insurance carriers in each key global insurance hub: U.S., Bermuda, and London. This ensures our team constructs an insurance program that will continue to address the key risk trends found in your industry, while having the leverage to move the dial with insurance markets if needed.
Exceptional talent
We take immense pride in our unwavering commitment to put you and the protection of your financial institution first, and that starts with our people. This goes beyond simply assembling a workforce - it’s a people strategy based on attracting, investing in, and developing the best experts in the insurance industry so they feel empowered to deliver the best possible insurance solutions for your financial institution. This strategy enables us to maintain industry-leading Associate retention rates and talent investment.
Insurance solutions for financial institutions.
Our products include, but are not limited to:
Professional Indemnity/Errors & Omissions (E&O)
Directors, Officers, and General Partners Liability (D&O)
Financial Institutions Bonds (incl. FINRA, ERISA, and Investment Company Bonds)
Network Security, Technology E&O and Privacy Liability (Cyber)
Employment Practices Liability (EPL)
Fund Management & Professional Liability
Financial Specie (protecting high value, portable items such as precious metals, gems, securities, cash, and more.)
Employee Benefits
Transactional Risk (incl. Reps & Warranty insurance, Tax Opinion Liability)
Pension Trust/Fiduciary Liability
Digital Asset Protection
Special Risk (Kidnap & Ransom)
Property and Casualty
Active Assailant/Terrorism
Mortgage Impairment
Alternative Risk Financing Solutions (incl. Captives, Cat Bonds, Parametric Insurance)
Real Estate Owned Property (REO)
Mortgage Warehouse Fraud
Credit Insurance
Lender-placed Insurance
Master Trust Property & Liability
Collateral Protection/Vendor Single Interest
Deposit Insurance
Intellectual Property (IP)
Financial institutions we support
Banking & Capital Markets
Commercial, Retail and Community banks
Mortgage Brokers/ Bankers
Credit Card Issuers
Non-Bank Lenders
Credit Unions
Investment Banks
Boutique Advisory Firms
Industrial Banks
Security Broker Dealers
Prime Brokers
Loan Servicers
Debt Collectors
Custodians
Government Sponsored Enterprises (GSEs)
Asset Management
Asset Management Firms
Registered Investment Advisors
Mutual Funds
Hedge Funds
Private Equity
Private Credit
Infrastructure Funds
Business Development Companies (BDCs)
Venture Capital
Real Estate/REITS
Fund Administrators
Liquidating Trusts
Special Purpose Acquisition Companies (SPACS)
Insurance
P&C insurers
Life and Health insurers
Reinsurance
Insurance Agents & Brokers
TPAs
MGUs/MGAs
Captives
Financial Technology
Lending
Payments
Insurtech
Personal Finance
Robo-Advisors
Equity Financing
Consumer Banking
Money Transfers
BaaS providers
RegTech
Blockchain and Cryptocurrency
Financial Market Utility
Protecting your business today and wherever you will be tomorrow
Financial institution risk is becoming more globalized and interconnected. So, when it comes to your insurance program, you need a risk partner that can expertly navigate this landscape. With presence in 145+ countries, our model has been designed deliberately so you get access to risk and insurance expertise without barriers or boarders.
Holistic risk management solutions for complete peace of mind
Data-driven risk assessment
We evaluate your unique risk profile and identify areas where insurance coverage is needed or can be improved. Our analytical framework uses proprietary tools to drive risk identification and quantification to assist risk management decisions.
Policy analysis & recommendations
We analyze insurance policies on your behalf, and against those of your peers, ensuring that the terms, conditions, and coverage limits meet your specific needs. We provide recommendations and help you make informed decisions about insurance coverage.
Claims management
We have dedicated claims attorneys with specific financial institutions expertise to help maximize your insurance recoveries. We work directly with you and outside counsel to drive the best outcome, providing guidance and advocacy every step of the way.
Risk mitigation strategies
We develop risk mitigation strategies beyond insurance coverage. We provide advice on risk management practices, loss control measures, and other proactive steps to reduce your total risk exposure.
Market insights
We stay updated on industry and regulatory trends, emerging risks, and changes in insurance markets. We provide you with valuable market insights, helping your firm stay informed so you can adapt your risk management strategies accordingly.
Insurance program review
We periodically review your firm’s insurance program to ensure that coverage remains adequate and aligned with evolving risks. We identify any gaps or deficiencies and recommend adjustments or enhancements as needed.
Insurance for financial institutions – FAQs
What insurance should I be considering as a financial institution?
When it comes to your financial institution’s insurance program, we tailor your coverage to ensure it addresses your organization’s unique risk profile and best suits your objectives. There is no “one size fits all” approach when it comes to insurance for financial institutions. We partner with a diverse range of organizations from the financial institutions industry to acutely understand the current and emerging risks they face and will devise a program that specifically manages these exposures. Coverages to consider might include:
Directors, officers, and general partners liability
Errors and omissions
Crime
Cyber
Property & Casualty
Financial institutions bonds
Employment practices liability
Transactional risk
Employee Benefits
Do I need specialized insurance products as a financial institution?
Specialized insurance for financial institutions is very important to have given the unique and complex risk profile organizations in the space face. Whether your financial institution is a bank, asset manager, insurance company, investment fund, security broker-dealer, or financial advisor – you need a variety of specialist insurance solutions to protect your assets and people. Based on your firm’s risk tolerance the decision to transfer or retain such risk varies, and the need for specialized insurance may be driven by regulation, customer, board member, and vendor demands.
A comprehensive financial institution insurance program will often combine several lines of coverage.
What are the most common risks for a financial institutions?
Although the likelihood and impact of individual risks can vary from financial institution to financial institution, there are ten significant risk categories that broadly apply to most financial services firms:
Cybersecurity threats
Regulatory compliance
Disruptive technologies
Data privacy and protection
Economic volatility (market, liquidity, and credit risk)
Operational Risk (fraud, system failures, human error)
Environmental Social and Governance (ESG)
Geopolitical risks
Business interruption
Human capital, diversity, and talent management risks
Why is directors' and officers' liability (D&O) insurance important for financial institutions?
Among other things, D&O insurance is crafted to safeguard individuals from personal losses arising from legal actions filed against them in connection with their roles as a director or officer, while also providing balance sheet protection for the entity.
For financial institutions, a D&O policy can extend coverage to pivotal areas that are of particular concern for boardrooms. In the financial industry, where fiduciary responsibilities are significant, executives may face lawsuits from shareholders, regulatory bodies, or other stakeholders. D&O insurance helps attract and retain top talent by offering a layer of protection, encouraging qualified individuals to take leadership roles without fear of personal liability. It also helps maintain the stability and continuity of financial institutions by providing a financial safety net for key decision-makers.
How can risk control and risk consulting further support financial institutions?
A strategic risk consulting approach creates strong alignment between your business priorities and your risk management strategies. It ensures you are leveraging the financial institution risk expertise of your insurance broker by getting them to proactively identify opportunities for risk mitigation and address gaps that could increase exposure to your organization.
At Lockton, we work as an extension of your own financial institution by helping develop risk mitigation strategies beyond insurance coverage. This includes risk management practices, loss control measures, and analytics to help ensure risks are controlled before they materialize.
Let’s talk insurance for your financial institution
Get peace of mind for your financial institution - connect with our specialist financial institution insurance team and we’ll be in touch as soon as we can.
Talk to our team