Insurance for FinTech companies in Canada

Are you constructing your dream home or undertaking a significant renovation of your residential or commercial property? Safeguard your vision with Builder’s Risk Insurance. This coverage ensures your project is protected during the construction phase and offers peace of mind for your developing dream home or space.

Right on the money. How Fintech companies are thriving…

“Show me the money!” Not only is this Cuba Gooding Jr’s most memorable movie quote it is also a phrase that people who work in fintech are likely very familiar with. This is because in the fintech world, showing people the money is what you do.

In other words, businesses that provide financial services through software, the internet, cloud services, mobile devices or other tech are fintech companies.

Certainly, the demand for fintech is ever increasing. According to Forbes, there are 1.7 billion adults worldwide without bank accounts relying on fintech for their financial services. Fintech is helping people pivot and pursue their dreams. For example:

“Initially, fintech referred to technology that was applied to the back-end systems of banks or other financial institutions – but has since grown to encompass a plethora of other applications that are more consumer-focused. In 2020, it is possible to manage funds, trade stocks, pay for food or manage insurance through this technology (and often on your smartphone). 

The tools provided by fintech are changing the way many consumers track, manage and facilitate their finances. In fact, according to data from 2016, people use between one and three apps to manage their finances. And, it seems as though investors are bullish on the industry. According to CNBC, fintech investment soared up 18% in 2017 alone.”1 

Whether your fintech company is well-established like Kickstarter, Patreon, GoFundMe, Paypal and Shopify or just emerging, you need insurance. Specifically, you need insurance that addresses the risk exposures that your fintech firm faces.

Most importantly, here at ALIGNED, our insurance brokers exclusively deliver business insurance. What this means is that we know the marketplace. That is to say, we have relationships with more than 65 of Canada’s top insurance companies. And we can connect you to the best options, value and pricing for fintech companies.

If you are looking for a different kind of insurance brokerage, you are on the right page. Contact us to get your fintech insurance aligned. Together, we will show you insurance options!

Why fintech can be risky business…

“Show. Me. The. Money!” So this is also a memorable Tom Cruise quote. And anyone who’s vaguely familiar with the actor’s work will also recognize that Cruise’s iconic white dress shirt in Risky Business quickly became the work-from-home fashion norm during the pandemic.

Suffice it to say, fintech companies in Canada are not immune to risk. And if risky business is on your mind, knowing a top Canadian insurance company has your back is important. Most importantly, an insurance company that specializes in fintech insurance. This is because…

“Whether you are an established fintech company or a new start-up, the right insurance and crisis management plan can mean the difference between the survival of your fintech business, or financial disaster and reputational ruin.”2

And as much as having the right insurance in place for your fintech company you also need to think about risk management for your business.

For instance:

  • “Being within the financial services sector, professional liability is essential insurance and, for many, a compulsory regulatory requirement, whilst directors’ and officers’ insurance is key for attracting top management and personally protecting them.
  • For fintech businesses, which will have a combination of technology, money and personal data at their core, protection against cyber risks and theft is also an essential part of comprehensive cover.
  • Never underestimate the importance of your crisis management plan and the responses and actions in the immediate period after a cyber breach. They could be crucial for the survival of your company. “3

We know its important to connect our thousands clients across Canada with the best options and value in the marketplace. This is why we continually strengthen our relationships with top insurance companies in Canada.

One of these companies is Markel Canada. Above all, they understand the specific needs of fintech companies in Canada. They explain the product offering they have built for the fintech industry below.

“Since launching the fintech insurance policy in 2016, Markel is very proud to be providing insurance to over 100 fintech companies that offer services such as banking, money transfer, trading, investments, lending and most recently Account Information Service Providers (AISPs) and Payment Initiation Service Providers (PISPs). …The Markel fintech policy provides the essential insurance cover needed for companies that wish to become authorised by the FCA to be able to offer these services.”4

If you are looking for a single fintech policy that provides the coverage your company needs to rest easy, we can get you aligned with a Markel solution.


Worried about breaches? Get crisis management support and much more…

“You had me at hello.” These words represent how we felt when we discovered the broad and specific coverage Markel delivers for fintech companies in Canada.

Data breaches are what keep you up at night. And they are precisely what Markel Canada’s fintech insurance solution is crafted to deliver. Not only do they have experts available 24/7/365 but they have a combined team that is only a phone call away.

The team includes Markel claims handlers, Dolden Wallace Folick, Fasken Martineau, Edelman and Global Public Affairs. In the event of a data breach incident, this team is ready to respond. Support services are varied and vast.

For example:

  • “data breach management
  • technical forensic investigation
  • legal advice
  • notification assistance
  • web and credit monitoring
  • and public relations services.”5

Furthermore, “in the event of a data breach incident our crisis management team will provide advice, assistance and guidance to ensure:

  • containing of the incident
  • identification of any compromised data
  • assessing of notification obligations
  • data subjects are notified promptly where appropriate
  • engaging call centre services (as necessary)
  • credit monitoring and web monitoring are available (where required)
  • regulators are notified and kept informed
  • normal operations of systems is returned to
  • addressing of any reputational issues via appropriate media
  • assessing liability exposures as well as devising response strategies 6

In short, if you are looking for insurance for fintech companies in Canada, we can get you aligned. Contact us now to talk about your specific needs and risk exposures.

In summary | Don’t let risky business worries hold you back

Firstly, building a business isn’t easy. Secondly, maintaining business momentum is equally hard. And forging a path in a relatively new industry can challenge even the most passionate entrepreneur. In addition, being in the highly regulated financial services industry is nothing short of complex.

We know this. As a result, we are 100% focussed on business insurance. Therefore, we are experts at connecting the best possible solutions for our clients across Canada.

To sum up, if you need fintech insurance for your Canadian company, talk to us now about how we can get your business aligned.

Source(s): 1 What is Fintech? Uses and Examples in 2020 ; 2,3, 4 Fintech Insurance ;

Buy Insurance Online Now!

We offer online insurance products for multiple industries, just fill out a simple application form and get a quote today!