Actuaries are professionals who analyze and evaluate the financial risks and implications of uncertain events. Their work involves complex calculations and modeling to help organizations, individuals, and governments make informed decisions about financial planning, investments, and insurance.
Due to the nature of their work, actuaries face certain risks and exposures that require specific types of insurance coverage. In this article, we will discuss the importance of insurance for actuaries, the types of insurance needed, risks and exposures for such businesses, and more.
Who Needs Insurance For Actuaries?
Both companies and freelancers offering such services need to protect themselves from potential claims by clients for errors or omissions in their work. Apart from that, they need to protect themselves from potential lawsuits by clients or stakeholders for losses resulting from inaccurate or flawed actuarial advice.
Types of Insurance Needed by Actuaries
There are several types of insurance that actuaries may need, depending on their specific circumstances. These include:
- Professional Liability Insurance: This type of insurance, also known as errors and omissions (E&O) insurance, protects actuaries from claims by clients for errors or omissions in their work. It covers legal fees, settlements, and judgments that result from such claims.
- General Liability Insurance: This type of insurance protects actuaries from claims by third parties for bodily injury or property damage resulting from their business activities. It covers legal fees, settlements, and judgments that result from such claims.
- Cyber Liability Insurance: This type of insurance protects actuaries from claims resulting from data breaches or cyber-attacks that compromise their clients’ sensitive information. It covers legal fees, settlements, and judgments that result from such claims.
- Business Owner’s Policy (BOP): A BOP is a package policy that combines general liability insurance, property insurance, and business interruption insurance. It is designed for small businesses, including freelance actuaries, and offers comprehensive coverage at an affordable price.
How Much Does Insurance For Actuaries Cost?
The cost of insurance for actuaries varies depending on several factors, such as the type of insurance, the coverage limits, the nature of the work, and the size of the company.
It is crucial to choose a policy that is perfectly adjusted to your company, but it’s hard to find such a service without expert knowledge. With the help of our professional agents, you can get a personalized comparison of the best offers for your actuary business.
Insurance For Actuaries – Risks & Exposures
Actuaries face several risks and exposures that require insurance coverage. These include:
- Errors or omissions in their work: Actuaries may make mistakes in their calculations or modeling, which can lead to significant financial losses for their clients. Professional liability insurance can protect them from claims arising from such errors or omissions.
- Cybersecurity breaches: Actuaries deal with sensitive financial data and may be targeted by cybercriminals who want to steal this sensitive information. Cyber liability insurance can protect them from claims arising from data breaches or other cyber-attacks.
- Bodily injury or property damage: Actuaries who work in physical locations, such as offices or client sites, may be exposed to risks of bodily injury or property damage. General liability insurance can protect them from claims arising from such incidents.
- Business interruption: Actuaries who are unable to work due to unexpected events, such as natural disasters or equipment failures, may experience a loss of income. A BOP can provide coverage for such business interruptions.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8999 Services, Not Elsewhere Classified
- NAICS CODE: 524298 All Other Insurance Related Activities
- Suggested Workers Compensation Code(s): 8810 Clerical Office Employees NOC, 8742 Salespersons or Collectors – Outside
Insurance For Actuaries – The Bottom Line
Insurance for actuaries is essential to protect them from potential risks and exposures arising from their work. Professional liability insurance, general liability insurance, cyber liability insurance, and a BOP are some of the types of insurance that actuaries may need.
It is important for actuaries to evaluate their risks and exposures carefully and to obtain adequate insurance coverage to protect themselves and their clients. This process can be much easier if you cooperate with a knowledgeable and experienced agent – in order to find such a professional, contact General Liability Insure now!