Mistakes happen in every industry, but mistakes in the financial sector can have enormous repercussions for financial institutions. Fortunately, there’s a way to protect your community bank, credit union, or other financial services provider. Read below to discover the three scenarios where bankers’ professional liability insurance can save the day.
A disgruntled customer may not be the only danger your financial institution faces if they issue a misleading or incorrect statement. Should you find yourself on the other side of a lawsuit due to a misleading statement, a BPL policy can cover your legal defense and reimburse any losses.
Did you know nearly a third of lawsuits brought against financial institutions are related to depositors? Whether through administrative error, accidental asset transfer, or illegitimate endorsement, every deposit brings a measure of risk. But when you have a BPL policy, you can rest easy that you – and thus your customers – are covered against losses resulting from depository mistakes.
If a customer files a claim against your financial institution for mis-selling, the legal defense costs can be staggering. Fortunately, a BPL policy can provide protection against loss whether the claim revolves around omitted information, misleading sales tactics, or other related allegations.
Bankers’ professional liability insurance can provide defense and protection for all three of the above scenarios and many more. When you acquire a BPL policy, you get more than insurance: you get peace of mind.