Financial Lines

What financial lines covers

Financial lines is an umbrella term for specialist corporate insurance products that address financial loss exposures beyond traditional property and liability cover. For mid-market companies, the relevant products typically include:

Crime and fidelity — covering direct financial loss from employee dishonesty, theft, forgery, computer fraud and social engineering. This includes the increasingly common scenario of fraudulent payment instructions received via compromised email accounts.

Tax audit insurance — covering the professional fees incurred in responding to ATO audits, reviews and investigations. For mid-market companies, a complex tax audit can generate accounting and legal fees well into six figures.

Statutory liability — covering fines, penalties and defence costs arising from unintentional breaches of legislation including WHS, environmental, fair work, privacy and competition law.

Kidnap and ransom — relevant for companies with employees travelling to or operating in high-risk international jurisdictions, covering ransom payments, crisis response costs and business interruption.

Integration with management liability

Financial lines products should be structured alongside your management liability program to ensure consistent coverage across related exposures. A crime loss may also trigger a D&O claim. A statutory breach may involve both the company and individual directors. We structure these covers as an integrated package to eliminate gaps and avoid disputes between insurers at claim time.

‍