Payment Processor & Merchant Services Insurance Coverage Checklist
The coverages a payment processor & merchant services 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 payment processors, ISOs, payment facilitators, and merchant service agents. Priorities reflect typical exposure for this class; confirm against your actual role and contracts.
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 |
|---|---|---|---|
| Cyber / Privacy Liability | Covers card data breaches, forensics, notification, and PCI fines where insurable. | Core | |
| Technology / Professional E&O | Covers processing errors, outages, and failed settlements that cost merchants money. | Core | |
| Crime (incl. Social Engineering) | Covers theft of funds by employees, hackers, and fake payout instructions. | Core | |
| Merchant Chargeback / Credit Loss | Covers losses when merchants fail and leave chargebacks — rarely in standard policies. | Prevalent | |
| Directors & Officers | Covers leaders in regulator, investor, and sponsor bank actions. | Prevalent | |
| General Liability | Covers office premises and bodily injury claims. | Core | |
| Employment Practices Liability | Covers claims by staff and sales agents. | Situational | |
| Contractual Liability | Confirms what sponsor bank indemnities your policies actually cover. | Prevalent | |
| Regulatory Defense | Covers responding to FTC, CFPB, and state investigations. | Situational | |
| Fidelity Bond | Required by some sponsor banks and card networks. | Situational |
The coverage gap most often missed
The gap most often missed by processors and ISOs is merchant losses. Cyber and E&O policies don't pay for chargebacks a failed merchant leaves behind, and sponsor bank contracts often push those losses — and card-brand fines — down to you. Regulators also go after processors for their merchants: in 2026 the FTC sought $12 million from a processor accused of boarding shell merchants. Read your sponsor bank agreement with your advisor and confirm which losses your policies actually cover.
Send us the checklist and we'll review your payment processor & merchant services coverage line by line, then market it across multiple carriers that compete for your account.
Related: Payment Processor & Merchant Services Insurance · Payment Processor & Merchant Services Supplemental (apply) · All coverage checklists
Frequently asked questions
What insurance does a payment processor & merchant services business need?
The core coverages for a payment processor & merchant services business are Cyber / Privacy Liability, Technology / Professional E&O, Crime (incl. Social Engineering), 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 payment processor & merchant services 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.