Financial Institutions Liability Cover

The Solution 

Risk management is essential to the survival of financial institutions and entails the mitigation thereof through the implementation of risk controls and the purchase of Camargue’s Financial Institution Liability insurance. Although most financial institutions purchase this type of coverage, there are many which, due to their size and activities, do not feel they have the exposure to such potentially severe losses and purchase only the minimum cover prescribed by the Financial Services Board.  

Why you need it 

The introduction of stringent corporate governance requirements stipulated in the new Companies Act and King III report, and increased consumer awareness due to the Consumer Protection Act, has highlighted the need for financial institution insurance that is backed by strong and stable security, to manage and mitigate a multitude of risk exposures on a daily bases. 

Value-Added Services 

Camargue’s unique M3 approach to insurance is geared towards managing, mitigating and migrating critical business risks – an outcome achieved through the provision of value-added risk benefits to policyholders. Notwithstanding the coverage provided in terms of the policy, the additional risk management benefits further enhance the Camargue product offering and go way beyond simple insurance.  The overall result is a well-rounded and complete solution to the risks faced by financial institutions.

Risk Management Services Included In Policy Cover:

  • Private Arbitration Service:
    Offered through TOKISO Dispute Settlement - this free arbitration service works towards fast, equitable resolution of disputes between the insured and their clients. Disputes which may arise include lease / rental contract disputes or service contract disputes with clients and as far as possible, court proceedings are avoided, saving time, money, and more importantly reputation
  • Optional Governance Audits:
    A service offered through Corporate Governance Accreditation (Pty) Limited, to identify potential problems
  • IOD Membership:
    To assist Executive Directors in keeping abreast with the developments in the corporate governance arena, sponsored affiliate membership of the Institute of Directors is offered to the insured

Camargue: redefining the boundaries of risk management, now and into the future.

What we cover 

Financial Institutions Bond

  • This policy wording, historically known as Bankers Blanket Bond coverage, is tailor-made to suit the requirements of financial institutions:
    • Bankers Blanket Bond provides indemnity against financial loss which may occur during the course of normal trading operations
    • Electronic and Computer Crime covers financial losses sustained by the Insured which result from electronic and computer crime risks perpetrated by third-parties
    • Professional Indemnity indemnifies the insured against legal liability to third-parties for financial loss caused by a negligent act, error or omission, committed in the course of providing financial services

Dependent on the nature of the insured’s business activities, and FSB insurance regulations, the insured may opt to purchase standalone PI or FG cover only.

Directors & Officers

  • Cover is provided for:
    • Any Wrongful Act including actual or alleged breach of contract, breach of duty, trust, act, error, neglect, omission, misstatement, misleading statement, breach of warranty or authority
    • Cover for the company where the company reimburses the Directors and Officers
    • Securities claims which can have a significant effect on the bottom-line of the company, particularly publicly traded companies, are also covered

Downloads 

PDF icon BrochurePDF icon Asset Fund Managers Proposal FormPDF icon Banks Proposal FormPDF icon FI Directors' and Officers' Proposal FormPDF icon FI Professional Indemnity Proposal FormPDF icon General Financial Institutions Bond Proposal FormPDF icon Pension Fund and Medical Aid Administrators Proposal FormPDF icon Supplementary Stockbrokers Proposal FormPDF icon Trusts Financial Institutions Bond Proposal FormPDF icon Underwriting Agency Proposal FormPDF icon Asset Fund Managers Fund Fact SheetPDF icon Policy WordingPDF icon Directors and Officers Wording