FGIB:Securing Comprehensive Bankers Professional Liability Insurance

Community banks, savings and loan companies, credit unions, and other financial institutions are considered as safe keepers for their individual, governmental, and corporate customers’ assets. In the course of handling large sums of money, financial institutions and their employees and owners are subject to a variety of professional liability risks. These risks, for example, may include allegations of wrongful acts related to a bank’s administration of a trust, claims involving the mis-selling of financial products, claims by an investor that an adviser recommended unsuitable investments and/or failed to disclose risks concerning such investments, and so on.

To properly protect against these and other risks, a Bankers Professional Liability (BPL) policy is required. A BPL policy offers banks, their executives and employees coverage for alleged errors or omissions in professional services rendered to customers. Financial Guaranty Insurance Brokers (FGIB) can provide you with this policy and customize the coverages you require to address your operations and the services you offer.

The Benefits of a Bankers Professional Liability Policy

  • Helps protect the assets and integrity of your institution
  • Covers the cost of defense and damages awarded, up to the policy limits
  • Provides specialty coverage generally not included under standard policies

The policy will provide coverage to defend against a lawsuit, even if it’s without merit, and the settlement if necessary. Our staff will not only work with you to determine the limits of your BPL policy but also in designing the scope of coverage (all risk vs. specific perils, how professional services are defined, whether lender’s liability will be included, policy exclusions, for example), which is central to the value of the policy you purchase.

In addition, there are several ways BPL coverage can be added to an insurance program, which we will review with you in detail. You can purchase a stand-alone BPL policy, add the coverage to a D&O policy and extend the coverage to all “entity” insureds and all employees of such “entity” insureds, in addition to the directors and officers that typically are covered by D&O insurance.