Factoring & Invoice Finance Insurance Coverage Checklist
The coverages a factoring & invoice finance 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 factoring companies and invoice and receivables finance lenders. Priorities reflect typical exposure for this class; confirm against your actual products and portfolio.
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 / Financial Institution Bond | Covers fraud by employees and forged or fake documents, where included. | Core | |
| Lender's / Professional E&O | Covers claims that underwriting, servicing, or collections caused client loss. | Core | |
| Social Engineering / Funds Transfer Fraud | Covers payments sent to fraudsters through fake bank change requests. | Core | |
| Directors & Officers | Covers leaders in investor, lender, and regulator actions. | Prevalent | |
| Cyber / Privacy Liability | Covers client financial data and account takeover. | Prevalent | |
| Trade Credit Insurance | Covers non-payment by debtors on non-recourse accounts. | Situational | |
| Fraudulent Invoice / Lender's Fraud Coverage | Covers fake or double-pledged receivables — often excluded from crime. | Prevalent | |
| Employment Practices Liability | Covers claims by staff. | Situational | |
| General Liability | Covers office premises. | Core | |
| Fidelity Bond | Required by some bank lines and investors. | Situational |
The coverage gap most often missed
The gap most often missed by factoring companies is fake invoices. Many crime policies cover employee theft but exclude losses from relying on false invoices or documents submitted by clients — the exact loss in schemes like the one that hit at least four factors for over $2 million. Ask your advisor whether your policy covers client fraud and forged receivables, and verify every invoice with the debtor before funding.
Send us the checklist and we'll review your factoring & invoice finance coverage line by line, then market it across multiple carriers that compete for your account.
Related: Factoring & Invoice Finance Insurance · Factoring & Invoice Finance Supplemental (apply) · All coverage checklists
Frequently asked questions
What insurance does a factoring & invoice finance business need?
The core coverages for a factoring & invoice finance business are Crime / Financial Institution Bond, Lender's / Professional E&O, Social Engineering / Funds Transfer Fraud, General Liability. 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 factoring & invoice finance 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.