How to Protect Your Bank From Liability Risks

The banking industry faces a broad range of liability exposures. The potential risks can threaten community and private banks alike. Despite your best efforts to prevent unforeseen perils, there are circumstances that can undermine the financial integrity of your institution. Examples of the problems the finance sector encounters include ERISA, employment discrimination, breach of fiduciary duty and lender liability claims. Whatever the risk, bankers professional liability insurance provides comprehensive protection for handling these risks.

There are several types of coverage plans available for banking institutions. Employment practices liability provides addresses the needs of employees, officers and directors. It protects against exposures such as wrongful termination, sexual harassment and discrimination allegations. Directors and officers liability is a policy that protects these individuals from lawsuits for alleged acts of impropriety as well as claims associated with shareholder disputes and employment policies. Bankers professional liability safeguards the bank and its employees from claims related to issues such as offering bad financial advice to clients. Errors and omissions is another policy that defends your institution against claims alleging poor performance or negligence with the delivery of professional services.

There are so many factors that can leave your bank vulnerable to lawsuits. With bankers professional liability insurance, you’ll have the coverage necessary for handling any legal risk.

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