Stock Indemnity Insurance provides professional indemnity coverage specifically for stock brokers, such as those operating on exchanges like BSE, NSE, NCDEX, and MCX. It is designed to protect against losses unique to the stock broking industry. The policy safeguards brokers from losses due to errors, omissions, or mistakes made by themselves, their employees, or their predecessors while offering services or advice in their capacity as brokers.
Coverage under Stock Brokers Indemnity Insurance includes:
• Employee dishonesty or fraudulent acts, including loss of securities, cash, or property.
• Losses due to incomplete transactions.
• Forgery and fraudulent documentation.
• Legal defence costs and associated fees.
• Errors and omissions involving third parties or clients, subject to excess.
• Proprietary trading errors and omissions, subject to excess and specified limits.
• Indemnity against computer crimes, covering computer systems, electronic instructions, data and media communications, service bureau operations, e-securities, computer viruses, verification, and data reconstruction expenses.
• Coverage for dematerialized securities trading and settlement, among other related activities.
Additional Coverage Options:
• Coverage for intermediaries.
• Protection for branch offices.
• Book-building process coverage.
