Industry - Banking and Finance Freelance Business Insurance

FreelanceInsure offer a number of policies to suit the freelancer or consultant working in the Banking and Finance sector.

Any company or sole trader who works in the banking or finance sector will be legally required to obtain professional indemnity insurance. In fact many of the regulatory bodies and professional memberships which are required in this industry require professional indemnity policies of a minimum amount to be in place.

Finance Professional men and women

Banking and finance professionals undertake a special type of work which means that they are responsible for the financial assets of their clients. This may mean that they have money coming in from their clients which they are expected to invest or look after in some way, or they carry out functions which involve buying investment products on behalf of their clients.

Because of the extraordinary amount of trust which is involved in financial transactions, professionals in these fields need to show they are covered for any mistakes or oversights which may happen. Professional indemnity insurance will usually start at around £1 million worth of cover, however it is possible to get much more and in many cases it may be wise to do so.

Indemnity insurance aimed at the banking and finance sector will cover the cost of fighting any legal case which may be brought against you. The claimant will need to prove that you have acted negligently and that a duty of care was owed by you towards them and their business. In the case of banking and finance, this is usually clear cut as you are dealing with their money and this relationship implies a duty of care.

Common types of complaints

The types of complaints which may be made is that you have not looked after their money by investing it unwisely, you allowed them to put the money in an account which left them with a lower return, you gave incorrect advice or you were indiscreet with their personal information.

Your client will be within their rights to approach the Financial Ombudsman if they feel that you are not handling their complaint in a satisfactory way. Your insurance will cover you for any claims which arise out of that additional complaint. Some cases which have been passed to the Ombudsman and the Financial Services Authority have involved clear cut cases of theft of investments. In this case, your insurance may become invalid.

Regardless of the fact that professional indemnity insurance is a legal requirement for the banking and finance sector, it is still a wise investment which could reap rewards if your work is ever questioned by a client.