Who NOVAFINTECH Is For
NOVAFINTECH is built for companies that design and deliver fintech infrastructure without providing financial services to customers.
Typical examples include:
- Payments platforms
- Embedded finance providers
- RegTech vendors
- Compliance-as-a-service firms
Even though these companies aren’t regulated financial institutions, the scope of liability is broad.
What Traditional Policies Can Miss
The insurance market hasn’t kept up with the evolution of fintech. Infrastructure providers find themselves in a gray area — too financial for tech errors and omissions (E&O); too technical for FI Professional Liability. And the faster they scale, the more the risk grows and the more complex exposure becomes.
Tech E&O policies focus on errors in software and technology delivery, but don’t fully account for the financial impact when fintech infrastructure fails. For example, if a payments platform outage leads to losses for banks or merchants, the resulting claims may exceed the scope of a standard tech E&O product.
Likewise, FI Professional Liability products are designed for regulated institutions. They rarely contemplate the technological risk profiles of vendors building infrastructure.
This mismatch leads to fragmented insurance programs. Brokers try to stitch together multiple policies to approximate coverage, but gaps remain. These gaps might only surface during a claims dispute — in other words, when it’s too late. NOVAFINTECH changes this.
How NOVAFINTECH Bridges the Gap
Our own research, along with stakeholder engagement, indicated a need for policies that align with modern fintech operations. And so NOVAFINTECH was born. We combine financial and technology liability protection in a single, comprehensive policy, which includes coverage for cyber, AI and crime risks. This structure helps brokers simplify placement and ensure claims don’t fall through the cracks.
Fintech Insurance Claims Examples: NOVAFINTECH
1. Privacy and Network Security Breach
‘MarginCall’ is a fintech firm providing software to financial institutions that lets them manage their counterparty exposures on a live basis, and therefore, optimize the collateral posted.
The company faces challenges when client ‘LendCo’ alleges the software failed, bringing a claim against them. During the investigation, a historic network breach at MarginCall is uncovered. While LendCo itself becomes subject to regulatory scrutiny, MarginCall is drawn in and must cooperate.
NOVAFINTECH covers legal defense, breach response, regulatory cooperation costs, and representation for an implicated employee, ensuring comprehensive support.
2. AI-induced Liabilities
‘VerifiSure’s’ AI-driven identity verification tool misidentifies many legitimate users — especially minorities and women — as fraud risks, triggering financial harm claims against banks. The banks sue VerifiSure for service failures, discriminatory AI outputs, and regulatory breaches. A security flaw also exposes customer data.
NOVAFINTECH covers VerifiSure’s legal defense, breach response, regulatory cooperation, and representation for implicated individuals, providing comprehensive protection beyond standard cyber and tech E&O policies.
Takeaway for Brokers and Insurance Professionals
Fintech infrastructure providers are enabling the future of financial services, but their insurance options haven’t evolved to match their unique exposures.
Providers don’t need a patchwork of mismatched policies. They need insurance that understands both aspects of their business — technology and financial systems — and provides comprehensive protection for both.
NOVAFINTECH does exactly that. It allows companies to operate with confidence and peace of mind, knowing their exposures are properly covered.
Contact Relm to learn more.
