Bankers professional liability insurance, or BPL, is the risk-management foundation for financial institutions such as savings and loan companies, credit unions and community banks. It’s important to understand what these policies cover, because additional coverage may be needed in particular institutional settings.
Allegations and Claims of Negligence
Financial professionals work with large sums of money, and as such, they run the risk of being accused of negligence or wrongdoing in their handling of the money. Whether or not a lawsuit actually has merit, the bank or credit union is still responsible for paying the legal fees for its defense. Bankers professional liability insurance protects these institutions. It covers the costs, up to policy limits, of legal expenses and any damages awarded.
Policy Exclusions and Additional Considerations
A BPL policy covers many of the risks financial institutions face in the normal course of business, but there are some areas that are excluded by policy coverage. In addition, some banks or credit unions may need additional specific coverage such as lender’s liability. Working with a specialized insurance agency is the best way to craft a tailored policy.
When it comes to insurance for financial institutions, understanding bankers professional liability insurance is an important start. Protection from professional risks is one of the most critical steps to keeping a sound institution running with integrity.