Credit Counseling & Financial Literacy Insurance Coverage Checklist
The coverages a credit counseling & financial literacy business may carry — core, prevalent, and situational — why each matters, and the gap most often missed.
Pull out your current policy and check the box next to any coverage you can confirm is already in place — anything unchecked is worth a quick conversation with your advisor. Coverage checklist for nonprofit credit counseling, debt management, housing counseling, and financial literacy organizations. Priorities reflect typical exposure for this class; confirm against your actual services.
Tick each coverage you can confirm you carry — anything left unticked is a good question for your next policy review.
| Have it? | Coverage | Why this business needs it | Priority |
|---|---|---|---|
| Crime / Client Funds (Third-Party Theft) | Covers theft of DMP trust funds by employees or outsiders — the largest exposure for DMP providers. | Core | |
| Professional Liability (E&O) | Covers claims that counseling or a debt plan was handled wrong — missed creditor payments, bad advice. | Core | |
| Cyber / Privacy Liability | Covers breaches of Social Security numbers, bank accounts, and credit reports. | Core | |
| Directors & Officers | Covers board decisions and regulatory actions against leaders. | Core | |
| State License / Surety Bonds | Required in many states to offer debt management — confirm each state's bond is current. | Core | |
| Social Engineering / Funds Transfer Fraud | Covers payments diverted by fake creditor or vendor instructions — often a small sublimit. | Prevalent | |
| Employment Practices Liability | Covers claims by counselors and staff. | Prevalent | |
| Commercial General Liability | Covers injuries to clients and visitors at offices and classes. | Prevalent | |
| Workers' Compensation | Required once you have employees. | Prevalent | |
| Regulatory Defense Coverage | Covers defense costs in state, CFPB, or FTC investigations — often limited. | Situational | |
| Fiduciary Liability | Needed if the organization sponsors an employee retirement plan. | Situational |
The coverage gap most often missed
The gap most often missed by credit counseling agencies is client money. A debt management plan provider holds clients' payments in trust, and standard crime policies cover only the organization's own money unless client property coverage is added — one Utah agency closed after its trust account went into deficit and client payments bounced. Professional liability is the second gap if creditor payments are missed. Confirm crime coverage includes client funds, add social engineering, and reconcile the trust account often.
Send us the checklist and we'll review your credit counseling & financial literacy coverage line by line, then market it across multiple carriers that compete for your account.
Related: Credit Counseling & Financial Literacy Insurance · Credit Counseling & Financial Literacy Supplemental (apply) · All coverage checklists
Frequently asked questions
What insurance does a credit counseling & financial literacy business need?
The core coverages for a credit counseling & financial literacy business are Crime / Client Funds (Third-Party Theft), Professional Liability (E&O), Cyber / Privacy Liability, Directors & Officers, State License / Surety Bonds. This checklist also lists the prevalent and situational coverages worth considering, with a plain-English note on why each matters.
Is this checklist insurance advice?
No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.
Can Cory Washington & Co. review my credit counseling & financial literacy coverage?
Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.
This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.