Introduction
Insurance is a requirement common to every bank in the ecosystem. Prior to launching on the Unit platform, we ask all clients to purchase insurance coverage to ensure you are properly protected against unforeseen challenges or negative events.
The amount of coverage you need is tied to your user base. For most types of liability, we ask clients with more users to have more coverage.
The total cost of insurance coverage always depends on the circumstances of your specific business and user profile. However, for the coverage amounts we require, we find most clients spend $10k-$20k per year.
Coverage Requirements
We’ve reduced your insurance requirements by mitigating risk with bank-trusted onboarding, transaction monitoring, and compliance management processes.
The table below outlines coverage requirements for different liability types based on the risk management requirements of Unit and our bank partners. The values listed represent the limits you need (i.e., the maximum amounts your insurer will pay if a covered event occurs).
| Coverage Type | <50k total users | 50k-250k total users | >250K total users | Notes |
|---|---|---|---|---|
| General Liability (excluding Property) | $1 million per occurrence + $2 million in aggregate | $1 million per occurrence + $2 million in aggregate | $1 million per occurrence + $2 million in aggregate | Unit should be added to the policy as an additional insured party |
| Professional Liability (Errors & Omissions) | $3 million | $4 million | $5 million | |
| Cyber Liability & Privacy | $3 million | $4 million | $5 million | |
| Crime | $3 million | $4 million | $5 million |
|
| Workers Compensation | TBD | TBD | TBD | You will need Workers Comp coverage, but the specific requirements depend on the state(s) in which your business operates |
About the Coverage Types
- General Liability (excluding Property): Provides coverage for bodily injury, property damage and personal injury from your business operations to a third party.
- Professional Liability (Errors & Omissions, or “E&O”): Protects against actual or alleged negligent acts, errors, or omissions, including the legal cost to defend the company.
- Cyber Liability & Privacy: Covers a variety of cybersecurity and privacy-related claims, including data breaches, cyber extortion, and cyber-related crisis management, public relations, and customer notifications.
- Crime: Addresses your company’s vulnerability to direct losses stemming from different types of theft and fraud, including employee theft, forgery, financial counterfeiting, and premises burglary.
- Workers Compensation: Covers a variety of liabilities in case an employee is injured in the course of normal business operations, including coverage for lost wages, medical expenses, and rehabilitation. Note: Each state has its own laws for workers comp coverage, so your requirement will depend on the location of your business.
Adding Unit as an Additional Insured Party
Unit should be added to your General Liability policies as an additional insured party. On your Crime policy, Unit must be listed as the “loss payee” (Unit is reimbursed in the event of a covered loss). Please use the following address when listing Unit as an additional insured party/loss payee:
| Unit Finance Inc 114 Fifth Ave 18th FL New York New York, NY 10011 |
|---|
How to Buy Insurance
You are welcome to use any insurance provider you like, but we will review your policies to ensure they are adequate. We also require that your provider maintains: (1) a financial strength rating of at least “A-,” and (2) a size rating of at least “VIII,” both as defined by AM Best.
Please contact Unit for an introduction you to one of our trusted insurance brokers, who can provide detailed answers to your questions and help get you quotes for limits that will work for Unit and our bank partners.
- Brush Creek Partners
- Epic
- Vouch: You can get started with the 10 minute online application by visiting vouch.us/unit and clicking APPLY NOW. Make sure to use this link to obtain our partnership discount.