Fintech insurance in Australia may depend on the licensing model: whether a business works under a financial services or credit licence, or supplies technology. Fintech startup insurance may include professional indemnity, technology professional indemnity (Tech PI) insurance and cyber insurance.
Professional indemnity insurance is designed to cover claims that your advice, service or work caused a client financial loss.
Tech PI insurance is designed to cover claims that your advice, service or work caused a client financial loss. It may include legal defence costs, compensation and any settlement you are legally liable to pay, subject to the policy terms.
Cyber insurance is designed to cover costs after a data breach or cyber attack.
Cover depends on the policy and insurer you choose. Check the policy wording and its terms and conditions for what is and isn't included.
Key takeaways
- A fintech's licence may change where insurance requirements come from.
- Digital asset businesses may already need a licence before April 2027.
- Banking partners may ask for proof of cover.
Is your fintech regulated or a technology supplier?
A regulated fintech provides financial services or engages in credit activities under an Australian Securities and Investments Commission (ASIC) licence or a licensee's authorisation. A technology supplier provides software or infrastructure.
| Question |
Regulated fintech |
Technology supplier |
| What does it provide? |
Financial services under an
Australian financial services (AFS) licence
or credit activities under an
Australian credit licence,
or as an authorised or credit representative
|
Software, data or infrastructure |
| Where may requirements come from? |
Licensee compensation rules and contracts |
Contracts, which vary
(startup insurance guide)
|
| Which covers may come up first? |
Professional indemnity and cyber insurance |
Tech PI
and cyber insurance
|
Swipe left or right to see the full table.
Is RG 126 professional indemnity mandatory for a fintech?
Australian financial services licensees serving retail clients must have compensation arrangements in place under the Corporations Act. ASIC Regulatory Guide 126 sets out how professional indemnity insurance is used to meet that obligation.
RG 126 (updated December 2025) calls professional indemnity insurance "the primary way to comply". ASIC considers adequate cover to include:
- a limit of at least $2 million per claim and in total per policy period, where retail financial services revenue is $2 million or less
- a limit about equal to that actual or expected revenue where it is higher, up to $20 million
- Australian Financial Complaints Authority awards, which may sit under a lower sub-limit
Credit licensees not regulated by the Australian Prudential Regulation Authority have a similar obligation (ASIC Regulatory Guide 210 (RG 210), issued March 2010). ASIC names professional indemnity insurance as the primary way to comply.
What changed for digital asset businesses after 30 September 2026?
ASIC's no-action position for digital asset businesses ended on 30 September 2026. ASIC says that from 1 October 2026, firms that need a licence or variation but missed the no-action conditions "risk breaching financial services law".
As at the time of writing (October 2026), the Corporations Amendment (Digital Assets Framework) Act 2026 commences in April 2027. upcover's crypto startup insurance guide has more detail.
What do banking partners and enterprise customers ask fintechs for?
Banking partners and enterprise customers may ask a fintech for evidence of professional indemnity, Tech PI or cyber insurance before signing.
A partner may ask for a certificate of currency (proof a policy is active) or a System and Organization Controls 2 (SOC 2) report. upcover's guides explain SaaS enterprise insurance requirements and US customer contracts.
What do fintech insurance claims look like?
Fintech insurance claims may follow a calculation error or a system outage (upcover's fintech insurance page).
| Claim |
Hypothetical claims example |
Is this covered? |
| Incorrect Financial Calculation |
An automated algorithm miscalculates fees and interest for a group of customers due to a coding error. Affected users claim they were overcharged and allege negligence and misleading information provided by the fintech business.
|
Claims arising from incorrect calculations, errors or misstatements in fintech services may be covered under Professional Indemnity where the insured is legally liable.
|
| System Outage Transaction Loss |
A software update causes a system outage that prevents customers from completing payments and accessing accounts for several hours. Several users allege financial loss and demand any settlement or compensation for failed or delayed transactions.
|
Claims alleging financial loss from system outages or software errors may be covered under Professional Indemnity where the insured is legally liable. Separate cover may apply under Cyber Insurance for the insured's own interruption losses.
|
Swipe left or right to see the full table.
Important: These claims are examples only. Cover is subject to policy terms, conditions and exclusions. Policy wordings vary between insurers. Always refer to the policy wording and its terms and conditions for details. If you have questions about a particular possible claim or would like assistance about whether a certain claim might be covered it is always best to speak to an upcover team member or your insurance broker.
If you're concerned about a particular customer service or experience, you can always consider telling your insurer as soon as you become aware of an incident, complaint or circumstance that could lead to a claim. Importantly, this doesn't impact your premiums or cost of insurance until a claim arises, and it means that any future claim is triggered from the original date you notified the insurer, so it helps spread the risk of claims across policy periods too.
You don't need to wait for a formal demand. Also keep in mind that notifying of a claim late may affect your claim.
You can start a claim through the make a claim page. Admitting liability, incurring costs or agreeing to a settlement before you notify your insurer may affect your claim. Starting a claim does not confirm that your claim is covered; your insurer assesses it under the policy terms, conditions, exclusions and limits.
What may fintech professional indemnity and cyber policies exclude?
Professional indemnity, Tech PI and cyber policies each commonly exclude some claims.
Professional indemnity
Exclusions commonly include, but are not limited to:
- cyber incidents and data breaches, which generally sit with cyber insurance
Tech professional indemnity
Exclusions commonly include, but are not limited to:
- service credits, liquidated damages and other liability you take on under a contract that would not otherwise exist under the law (contractual liability exclusion)
Cyber insurance
Exclusions commonly include, but are not limited to:
- dishonest or fraudulent acts by, or known by, a senior executive
Important: These lists are not exhaustive. Exclusions vary between insurers. Always refer to the policy wording and its terms and conditions for the exclusions that apply to you, and if you have questions you should speak to your insurance broker or the upcover team.
How upcover can help
upcover arranges insurance for fintech businesses. upcover works with 80+ insurance partners and can arrange quotes from a range of insurers.
- 70,000+ businesses covered across Australia
- 4.9/5 customer rating
- 80+ insurance partners
Request a fintech insurance quote.
Frequently asked questions
Does Tech PI count as RG 126 professional indemnity?
Under ASIC Regulatory Guide 126, "it is up to" the Australian financial services licensee to decide whether a Tech PI policy is adequate.
Does a fintech need an Australian financial services licence?
ASIC says a financial services business "generally" needs to be "authorised under an AFS licence", though some businesses "may be exempt".
How much does fintech insurance cost?
Your price may depend on factors including your industry classification, your revenue and the stage of your business (cost guide).
Does cyber insurance cover payment fraud?
Payment fraud cover depends on the policy wording: upcover's business email compromise (BEC) guide says "BEC coverage varies by insurer".
Do investors review fintech startup insurance?
Investors may ask about a fintech's policies, as upcover's due diligence guide explains.
Written by upcover's editorial team.
This article provides general information only and does not take into account your objectives, financial situation or needs. It is not legal or regulatory advice: get legal advice about whether your business model needs a licence and how licence conditions apply to your insurance. Laws and guidance described are as at the time of writing (October 2026) and may change. Insurance availability and cover are subject to underwriting and the terms, conditions, limits and exclusions of the relevant policy. Read the policy wording and its terms and conditions before deciding. upcover arranges insurance products with selected insurers and underwriters and does not compare all general insurers or insurance products available in the market.
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