Stockbrokers and commodities brokers, just like all business professionals and organizations, face inherent business risks. However, there are also risks particular to the profession, which is why we offer insurance programs tailored to the unique needs of the investment industry, including General Liability, Property, Workers’ Compensation, Crime, Business Auto and E&O.
- Stockbrokers are individuals or firms that act as middlemen between investors and stock sellers. They accept money from customers and invest the funds into the stock market on behalf of their customers. Stockbrokers may also assist customers decide as to which stocks their money should be invested.
- Commodity brokers are members of recognized commodity exchanges who are involved with buying and selling commodity contracts for their own accounts as well as futures contracts for their clients. In a commodities exchange, commodity brokers facilitate the trading of commodities and financial instruments between two individuals or entities.
Any business office faces risks that can be reduced by a number of common sense practices. Employees and customers can suffer injuries from slip/trip/fall incidents. For example, you would be liable for injuries to a client who trips on a loose floor covering that resulted in medical costs and even lost wages. Stockbrokers can also face the risk of Personal injury lawsuits from customers if confidential information is released to unauthorized parties through employee error, or inadequate security measures.
Commodities brokers, stockbrokers and their employees may suffer repetitive-motion injuries typical to office workers such as carpal tunnel syndrome , eye strain, and muscle strain to arms, shoulders, neck, and back as a result of using computers on a regular basis. Worker’s Comp covers the the employee’s medical care and wages in these cases.
Stockbrokers, commodity brokers and their employees often travel to meet with clients, which increases their risks of automobile accidents. Employees using their own vehicles for business related travel should be required to carry Personal Auto Liability insurance with a minimum of $300,000 combined single limits.
Property insurance covers damage to the physical property of the business. Fires, severe weather, faulty electrical wiring and broken plumbing are only a few causes of damage to buildings and their contents. A thunderstorm can result in lightning strikes that affect electrical equipment, cause fires and even flash flooding. The cost of repairs and replacement are covered by Property Insurance. To protect digital documents and information, firewalls and anti-virus protection should be installed on all servers and PCs.
Losses for brokerage firms may result from theft of money and securities or electronic theft. Crime Insurance protects your organizations from dishonest employees and hackers who steal client funds or information that can result in serious monetary losses to the company and clients.