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Validus product aims to address potential exposure gaps

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Validus Specialty Underwriting Services Inc. has crafted a policy to address potential exposure gaps faced by U.S financial technology firms, Validus Specialty said in a statement Thursday.

The policy “integrates a technology products failure trigger of coverage within all financial E&O insuring agreements, addressing the E&O exposures presented by Fintech platforms,” Sebastian Alia, underwriting counsel who drafted the policy forms, said in the statement.

The new product “eliminates the gaps in coverage for Fintech companies,” Cathy Cossu, Validus Specialty’s senior vice president of professional lines, said in the statement.

“Our FinTech policy integrates into our professional lines E&O coverage parts a dual trigger – either a traditional professional services wrongful act, or a technology products failure,” Validus said through a spokeswoman via email. “For example, if in the delivery of a professional service via an insured’s website there arises a technology products failure (i.e., an internet platform failure) that impacts the customer and results in a claim, the insuring agreement would trigger.”

The solution is designed to address Fintech’s complex risk management needs and can include directors and officers, errors and omissions, employment practices liability and other exposures, the statement said.

“We have leveraged our resources to embed the cyber and technology exposures directly into our E&O coverages,” Keith Adamson, assistant vice president of financial institutions, said in the statement. “We’ve also removed the complexity of piecing together non-cohesive coverages from different product lines.”