Securing Better Insurance for Less: A Payment Processing Case Study

Why Insurance Is Critical for Payment Processors

In today’s digital economy, businesses handling financial transactions and sensitive customer data face complex risks. From regulatory fines and cyber threats to professional liability claims, payment processors need a tailored risk management strategy—one that protects against costly lawsuits, security breaches, and operational disruptions.

Recently, we worked with a growing payment solutions provider that needed stronger insurance protection across their Professional Indemnity, Public Liability, and Cyber Insurance policies. After a thorough review, we secured broader coverage with significantly lower premiums, proving that better protection doesn’t have to mean higher costs.

The Challenge: Gaps in Coverage & Rising Insurance Costs

As the company expanded, they faced increased exposure to financial and legal risks. However, their existing insurance policies weren’t keeping pace with their business growth.

As part of a thorough review, we identified the following gaps in their insurance coverage:

• Professional Indemnity (PI): Their old policy lacked full contractual liability coverage, meaning they could be exposed to client lawsuits for financial losses caused by software issues, payment delays, or service failures.

• Public Liability (PL): The company handled a high volume of transactions and client interactions, but their third-party liability coverage was insufficient for their operations in multiple locations.

• Cyber Insurance: Despite being a payment processor—one of the top targets for cybercriminals, their cyber policy had low limits for cyber extortion, impersonation fraud, and regulatory response costs.

On top of these coverage gaps, their existing insurer had increased their renewal premiums, meaning they were paying more without gaining any additional protection.

With the business generating revenue from overseas markets, they also needed to ensure their insurance covered claims arising from international transactions—something their existing policy did not fully address.

Our Solution: Stronger Protection, Lower Cost

After a detailed risk assessment, we sourced new insurance policies that provided:

• Professional Indemnity (PI): Increased coverage limits, including full contractual liability protection—reducing exposure to disputes over client agreements and financial losses.

• Public Liability (PL): Higher limits for third-party injury and property damage, ensuring the business is protected across multiple locations.

• Cyber Insurance: Enhanced coverage for cyber extortion, fraud, and telephone hacking which are key risks for payment processors.

• Jurisdictional Coverage: Broadened the policy to cover claims arising from overseas revenue streams, aligning with their expanding operations in the USA and NZ.

• Premium Savings: By negotiating with alternative insurers, we secured a total premium reduction of 25%, delivering both cost savings and stronger coverage.

The Outcome: More Coverage, Less Cost

By restructuring their insurance program, the company now benefits from:

• Expanded coverage limits tailored to their industry risks

• Protection against cyber threats, regulatory actions, and client disputes

• A 25% premium reduction, leading to significant cost savings

This case highlights why regular insurance reviews are crucial, ensuring businesses stay protected as they scale and evolve without overpaying for inadequate coverage.

Does Your Business Have the Right Coverage at the Right Price?

If your Professional Indemnity, Public Liability, or Cyber Insurance hasn’t been reviewed recently, you may be paying too much for too little protection.

We specialise in helping fintech, payment processors, and SaaS businesses secure the best coverage at the lowest cost.

Get in touch today for a free insurance review and premium comparison.

Disclaimer:

The information and advice provided by Broad Risk Insurance Brokers is general in nature and does not take into account your individual objectives, financial situation, or needs. You should consider whether the advice is appropriate for you and read the relevant Product Disclosure Statement (PDS), policy wording, and Target Market Determination (TMD) before making any decision about purchasing, renewing, or cancelling an insurance policy. If you require personalised advice that considers your specific circumstances, we recommend speaking with one of our qualified insurance brokers. For more information, please contact us at warren@broadrisk.com.au or visit our website at https://www.broadrisk.com.au