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Finance Broker Insurance

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Finance brokers insurance

Finance broker commercial insurance NZ

Finance broker insurance is a tailored insurance package designed specifically for finance brokers. It combines multiple insurance types to cover various risks that brokers might encounter in their profession. This can range from potential legal claims to property damage at an office. Essentially, it's a safety net, ensuring that unexpected events don't result in major financial losses for the broker.

Why is finance brokers insurance important? 

For finance brokers, each day presents an array of decisions and interactions with clients. While you might execute everything with utmost precision, the world is unpredictable. Finance broker insurance acts as a shield against unforeseen challenges, ensuring you continue operations even in less than ideal situations.

In New Zealand, the average cost of finance brokers insurance typically ranges between $150- $300 per month. 

It’s crucial to have finance brokers coverage if your business:

  • Offers financial advice to clients
  • Handles sensitive client information
  • Operates from a physical office location
  • Has employees or team members

What insurance covers are typically included in finance brokers insurance? 

Finance Brokers Professional Indemnity

Finance Broker PI protects finance broking businesses from financial losses if they make mistakes or are accused of negligence while doing their job. 

Best For
  • Negligence claims 
  • Errors & Omissions 
  • Professional mistakes 

Public Liability

This policy covers common finance broking business risks including bodily injuries, customer property damage, and advertising injuries. It’s required for most commercial leases.

Best For
  • Business Accident Coverage
  • Third-party Damages
  • Legal Cost Protection

Statutory Liability

This cover is a type of protection that helps finance brokers cover costs if they accidentally break certain laws or regulations.

Best For
  • Unintentional breaches protection
  • Legal costs
  • Fines and penalties

Cyber Insurance

Insurance that helps protect finance broking businesses from financial losses caused by cyber-related incidents, like data breaches and computer attacks.

Best For
  • Ransomware attacks
  • Phishing scams 
  • Cyber extortion 

Management Liability

Management liability insurance in NZ shields finance broker company leaders from legal and financial risks due to their managerial responsibilities.

Best For
  • Directors liability 
  • Employment disputes
  • Legal defence

Business Contents Insurance

Business contents insurance in NZ is for protecting all the important stuff inside a finance broking business. If there’s a problem or accident, the insurance can help with the expenses.

Best For
  • Accidents 
  • Floods
  • Fires

How much does finance brokers insurance cost?

Finance brokers insurance premiums are calculated on several different factors including:

  • Types of cover
  • Turnover
  • Location 
  • Claims History 

Finance brokers insurance in NZ typically costs between $150 to $300 per month.

Who needs finance brokers insurance?

Any individual or firm engaged in finance brokering activities in New Zealand should consider this insurance. Whether you’re a solo practitioner offering advice on mortgages or a large firm handling multimillion-dollar business loans, you’re exposed to risks. These can be in the form of client lawsuits, data breaches, or even natural disasters affecting your office. To ensure continuity and safeguard your reputation, Finance broker insurance is a must.

While some types of insurance, like professional indemnity, might be required by regulatory bodies, not all elements of finance broker insurance are compulsory. However, considering the potential risks, it’s wise for brokers to have comprehensive coverage.

Typically, your insurance should extend its coverage to the actions and advice given by your employees. However, it’s vital to ensure that the policy explicitly states this to avoid any misunderstandings.

How do I get a finance broker insurance quote? 

We understand the unique needs of finance brokers in New Zealand. Leveraging our extensive industry knowledge and partnerships, we provide comprehensive finance brokers insurance quotes from the top insurers in the country and globally. Entrust us with your requirements, and we’ll ensure you receive the most competitive and tailored coverage options available.

To obtain a finance brokers insurance quote we may require you to provide some fundamental details about your business, such as:

  • The name of your business
  • The total number of employees
  • Predicted annual income
  • Years of experience in the industry

How do I get proof of finance brokers insurance?

You can usually get proof of finance brokers insurance same day when you purchase insurance through Gerrards.

Acquiring a finance brokers insurance certificate from traditional insurance brokers may require a few weeks, a delay that could create problems for policyholders who need instant insurance proof for an imminent contract or project.

To obtain insurance coverage promptly, contact one of our finance insurance brokers. 

What does finance brokers insurance not cover?

Claims Outside Policy Period

If someone raises a claim after your policy has expired, even if the event in question took place while the policy was active, it might not be covered. This scenario reinforces the importance of continuous coverage and understanding the terms of your policy.

Non-Finance Broking Activities

If a finance broker ventures into consulting services outside the realm of finance broking or offers advice on non-finance broking matters, these won’t be covered. It’s essential to ensure any additional services are included in the policy or covered separately.

Intentional Wrongdoing

Insurance is designed to cover genuine mistakes or unforeseen circumstances. If it’s found that a broker intentionally misled a client, committed fraud, or engaged in any illicit activities, insurance policies won’t step in to cover the resulting damages. This exclusion underscores the importance of always operating with integrity.

Other common questions about finance brokers insurance

Most finance broker insurances will cover defense costs, but always check the policy’s details. This can include attorney fees, court costs, and even settlements in some cases.

Start by informing us  promptly. Provide all relevant documentation, and we will guide you through the claim process, which may vary slightly depending on the nature of the claim.

Many policies are tailored to domestic transactions. If your business deals with international clients or transactions, you might need additional or specific coverage to ensure worldwide protection.

Initiating a claim starts by informing us as soon as possible. From there, we will guide you through the required steps, from collecting evidence to liaising with legal counsel. Being prompt and transparent in communications is crucial for a smooth claims process.

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