Banks are inherently at-risk due to the nature of the jobs they perform. Financial institutions handle large sums of money daily subject them to professional liability risks. Bankers insurance can help protect from some of these risks.
Bankers professional liability insurance is a type of errors and omissions coverage written specifically for banks, credit unions, savings and loans companies and other similar financial institutions. It protects banks and their employees from the expenses associated with providing a defense in a lawsuit or paying a judgment should the plaintiff win. It protects companies and their employees against claims that a professional service provided caused the client to suffer financial harm due to mistakes made by the institution or its employees or because the institution or its employees failed to perform some service.
Banks could be sued for a variety of reasons. While professional liability insurance covers a lot of things, it does not cover deliberate violations of law, fraudulent or dishonest behavior or other criminal acts. It also does not cover an invasion of privacy, slander, defamation or libel.
Bankers can purchase insurance tailored to their unique position. It can cover directors, officers, full-time, part-time and seasonal workers. “Banker” is a broad term that covers a lot of professionals working in the banking profession.
Bankers insurance can be purchased as a stand-alone policy or it can be added to an existing insurance plan.