Financial institutions are invaluable in a fast-moving society. Not only do they help individuals manage personal growth, they provide the financing companies need to grow the economy. In doing so, they expose themselves to lawsuits. Professional liability insurance for bankers helps give banking professionals the peace of mind they need to do their jobs effectively.
Like any business, financial institutions must purchase insurance to manage risks. Usually, banks have the following types of coverage:
- Property insurance
- Workers compensation insurance
- Vehicle insurance
Depending on the banks needs, it may also have a D&O policy or umbrella coverage. A careful analysis of a financial institutions business model helps determine what business insurance is appropriate.
Because they deal with finances, bankers often face lawsuits that other professionals easily avoid. As such, diligent bankers often choose to add professional liability insurance for bankers to their overall insurance coverage. Typically, this insurance covers the following types of banking errors and omissions:
- Misleading statements
- False statements
- Inaccurate forecasting
- Improper analysis
Of course, liability insurance generally does not protect against intentional torts and malfeasance, criminal conduct, fraud, and other bad acts.
While professional liability insurance for bankers doesnt cover every type of mistake a banking professional might make, it is often a vital part of a comprehensive insurance policy for many financial institutions. By working with a knowledgeable agent, bankers tailor overall policies to meet their individual institutions’ needs.