Show Me The Money

Credit is no new kid on the block, but it’s being used today in ways never contemplated by the first banks to peddle plastic to eager consumers. Those once traditional banks have undergone significant transformations and in recent years have been joined by an array of alternative lenders that have markedly altered the face of the financial services sector.

Both traditional and alternative lenders face a host of exposures, particularly in the professional liability arena. From honest mistakes to fraud, embezzlement, and misappropriation, financial services providers are vulnerable to claims and lawsuits that can cost millions and drive smaller firms out of business.

That’s the bad news. The good news is that resources exist that can deliver a broad array of coverages for financial services providers. One such resource is managing general underwriter Business Risk Partners (BRP), which recently brought on Vincent Cisternino to head its financial services practice.

Cisternino identifies three key trends that are transforming the space and explains how those trends are creating new professional liability exposures.

Business Risk Partners Expands Into Financial Services Sector

Business Risk Partners (BRP) has expanded into the financial services sector with the addition of two specialty insurance coverages: miscellaneous professional liability insurance for a broad range of lenders, advisors and financial entities, as well as a comprehensive policy for registered investment advisors.

SISTERS BRING DIVERSE BACKGROUNDS TO THEIR SUCCESSFUL SPECIALTY MGU

“Sisters, sisters/There were never such devoted sisters …”

That familiar lyric from the classic holiday movie White Christmas was sung tongue in cheek by glamour girls Rosemary Clooney and Vera-Ellen as they twirled their lush feathered fans and swore undying devotion while warning each other: “Lord help the mister/Who comes between me and my sister.”

It’s common for rivalry to exist between siblings, especially those of the same sex. That doesn’t seem to be the case for Lisa Doherty and Linda Boborodea, who in 2000 left the corporate world to establish Business Risk Partners (BRP), a managing general underwriter based in Windsor, Connecticut, that focuses on specialty lines.

Do Cyber Underwriters Need Property Underwriting Training?

A single cyber event can create multiple exposures with potential effects on one or more of a company’s insurance policies.

Cyber underwriters grappling with liability from such events would do well to learn from property underwriters who have a wealth of experience addressing similar issues in the following three areas: aggregation exposure, business interruption and risk management.