4 Main Types of Professional Liability Insurance

As someone making insurance decisions for a firm in the financial industry, understanding the risks of doing business is probably a good idea. Whether you work for a commercial institution, a private bank or a FinTech startup, your company can face liability risk from a number of sources. These might include consumer fraud claims, shareholder disputes, employment discrimination and others. Financial Guaranty Insurance Brokers offers four main insurance policies to address the myriad risks your institution might face. These policies include the following:

1. Employment Practices Liability (EPL)

When an employee alleges wrongful termination, sexual harassment or discrimination EPL coverage can cover your principles, directors and other employees.

2. Bankers Professional Liability (BPL)

This coverage can provide protection when a wrongful act takes the form of a misstatement, omission, error or neglect of duty resulting in a failure to render professional services. This might include improperly advising a customer with poor financial information.

3. Errors and Omissions (E&O)

If a customer has a poor experience, there might be allegations of performance failure. This customized coverage can compensate and defend your firm against negligence claims.

4. Directors and Officers Liability (D&O)

This coverage can specifically cover legal costs for directors and officers stemming from allegations of wrongdoing against a firm’s board of directors. The liability coverage can cover both legal costs and settlement costs.

Most polices should be customized to fit your unique situation. Call Financial Guaranty Insurance Brokers to speak with a professional about a mix of plans that works for your company.

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