Bankers professional liability insurance, which is commonly referred to as BPL insurance, has several important benefits for financial institutions such as savings and loan companies, credit unions and community banks. Here are three ways this type of coverage benefits businesses working in the financial sector.
Protection When a Lawsuit Is Filed
Working with money is a sensitive job, and professionals in the financial sector run the risk of having lawsuits filed against them and their companies for negligence or mishandling of funds. Legal defense expenses can mount quickly, and the manager or owner of a small bank or credit union shouldn’t have to worry about how the institution would pay for these expenses in the event of an actual lawsuit. BPL insurance gives these professionals peace of mind so that they can focus on ensuring the daily functionality of their operations.
A general liability policy is designed to cover the most common risks inherent in a business setting, but financial institutions face specific risks that other businesses don’t have. It’s critical to have insurance geared towards the specific risks inherent in handling money and managing trusts, deposits, withdrawals and investments.
BPL insurance is available for financial institutions that want to protect their integrity and assets. Although the risks in the sector can’t be completely eliminated, the right policy and coverage can help mitigate them.