People expect banks to protect their money. And for the most part, financial institutions are considered safe. But when employees handle large amounts of money, mistakes can occur. Allegations of mishandling can happen. At a bank in Enid, Oklahoma, just recently, a banker used his position as a loan officer to make fraudulent loans. (He was arrested and charged with multiple felonies.) Although bankers professional liability insurance won’t cover fraud, it’s an important part of your insurance portfolio.
Benefits of Professional Liability Insurance
- Protects the assets of your institution
- Maintains the integrity of your institution
- Covers defense costs of allegations, which can be very expensive, even in an unfounded claim
- Offers coverage that is not part of standard general liability insurance for businesses
- Offers resources to help manage risks and mitigate the liability to avoid claims
Even honest mistakes can be costly. When finances are involved, you can’t expect good customer service to cover up errors. It’s not only your finances on the line, but your institution’s reputation and brand.
Don’t overlook the value of a bankers professional liability insurance policy to cover all of the employees, directors, and officers of your institution. Work with your insurer to determine the limits of your policy to manage the costs while ensuring that your institution is protected.