Financial Lines

A Directors and Officers Insurance policy protects the assets of administrators, executives, and senior management personnel against third-party claims for alleged errors or omissions in their managerial duties. It also safeguards the company’s assets in case it assumes the defence of its directors and includes highly specialized coverage support in the event of a claim.

We are leaders in the management and underwriting of the aforementioned type of risk, providing our expertise to companies from various industries listed on the BMV or other international stock exchanges such as NYSE, NASDAQ, LSE, among others. We also advise private companies, civil associations, nonprofit organizations, religious associations, and many more.

Errors and Omissions Insurance, also known as Professional Liability insurance, is a policy that protects companies and their employees, regardless of their position or hierarchy within the organization, in the event of a third party alleging suffering a financial loss as a result of negligence, error, or omission purportedly committed by the insured company’s employee.

It is designed to allow professionals to carry out their work with a certain peace of mind, providing protection for their assets against third-party claims for errors or omissions.

Various professions can be specifically insured, each with unique terms and conditions, including:

• Financial Institutions
• Doctors, Dentists, and Nurses (Medical Malpractice)
• Architects and Engineers
• Technology Companies
• Insurance and Reinsurance Agents
• Law Firms
• Accounting/Tax Firms

However, any professional service can be insured, and we can offer coverage for it. Whether a company offers its professional services to various clients and wants to protect its assets in case it needs to respond to an error or omission, or if it is a company seeking protection against any damage caused by a supplier’s error or omission, we can provide ad hoc insurance policies covering either a single project or every project and service offered throughout the policy’s period of validity.

Commercial Crime Insurance protects non-financial businesses against fraud committed by employees, third parties, or collusion between them.

The purpose of the policy is to compensate for the financial loss suffered by the contracting company when an employee or a third party generates a financial benefit that does not belong to either of them.

There are various coverages which can be part of the policy, including, but not limited to, the following:

• Internal Fraud
• External Fraud
• Computer Fraud
• Social Engineering Fraud
• Extortion
• Forgery of Documents
• Unauthorised Signature
• Investigation Expenses
• Software Reconstruction Expenses
• Defence Expenses

For companies in the financial sector, there are specialized insurance coverages with texts, definitions, and coverages specific to their industry.

At ANCORA, we have the expertise to generate customized policy language that fits the unique needs of our clients.

This insurance is designed to protect the investments and assets of any company against risks of political and/or social violence, provided that the insured assets and investments are located outside the territory where the company is incorporated.

Some of the risks that can be covered by Political Risk Insurance policies include:

• Confiscation, expropriation, nationalisation, and deprivation.
• Creeping Expropriation: A series of acts that ultimately have the effect of an expropriation
• Operating License / Renegotiation or Cancellation of Concession.
• Social Engineering Fraud
• Export Embargo / Inability to Export.
• Forced Abandonment of Facilities.
• Selective Discrimination.
• Forced Divestiture: Venta forzada.
• Inconvertibility of currency and fund transfer.
• Non-compliance with an arbitration resolution or ruling.
• Political violence (including terrorism, strikes, war / civil war, etc.).
• Business interruption after an insured event—typically following political violence.
• Trade Disruption: Trade interruption.

Political Risk policies can have a duration of up to 15 years, are non-cancellable, and premiums remain fixed for the duration of the policy. They are ideal for protecting long-term investments.

Through our correspondents, we can locally serve projects and clients in more than 130 countries.

This insurance is specially designed for investment structures, both simple and complex, such as Private Equity Funds, CKD’s (Certificados de Capital de Desarrollo), FIBRA’s (Fideicomisos de Inversión en Bienes Raíces), Fund of Funds, etc. We also provide specialized coverage to companies preparing for an initial public offering (IPO).

Among the risks faced by institutions offering these services that can be covered by this insurance are:

• Fundraising
• Execution of investments
• Portfolio management
• Exit strategies

Whether it’s the fund manager, sponsored companies, investment vehicles, or a range of intermediaries and structures that are part of these institutions, the need for tailor-made policies is a constant with this kind of risk. At ANCORA, we have the capability and knowledge to manage local as well as multinational programmes for investment institutions and companies.

It protects the parties involved in a purchase-sale transaction against financial losses resulting from gaps, inaccuracies, or breaches in the representations and warranties made in the sale or merger of a business.

R&W Insurance can be purchased by the selling or buying party, offering different advantages for each one. Some of these advantages include:

• Limits or eliminates post-closing liability.
• Avoids the need for escrow or fund retention.
• Allows for immediate distribution of income without adjustments.
• Contingencies become a one-time expense.

• Does not need to directly address the seller in case of non-compliance.
• Eliminates differences in liability limits.
• Possible competitive advantage in the case of an auction.
• Can offer a “non-adjusted” price to the seller.
• Provides comfort to the financing entities of the operation.