Working on the board of a financial institution is a liability risk. If any wrongdoing by the bank is exposed, there is a possibility that you could be held personally liable to pay a civil money penalty. Civil monetary penalty insurance is a good way to reduce your risk and has three main benefits.
One benefit of CMP insurance is that deductibles are generally low. In fact, it is typically possible to get a policy with no deductible whatsoever. That means that if a penalty is imposed on you, your policy would cover it 100% up to the coverage limit. A second advantage is that coverage limits tend to be quite high. While normal CMPs are in the low 5-figure range, civil monetary penalty insurance limits can typically be set up to as high as $250,000. That means your insurance policy should cover most penalties with no cost to you at all beyond the deductible. Finally, the third benefit of CMP insurance is that the premiums are relatively low. Of course, premiums will vary depending on the deductible and limit you have selected; however, the costs are well within the price range of anyone serving on the board of a financial institution.
Getting an insurance policy to protect against civil monetary penalties is a great way to protect yourself from liability in a smart, customizable way.