FGIB:Offering Insurance for Civil Money Penalties for Directors & Officers

A financial institution’s Directors & Officers (D&O) insurance policy cannot provide coverage to individuals for civil money penalties imposed for alleged wrongdoing. The FDIC coupled with increased regulatory scrutiny has made it explicitly clear that a bank can’t insure or indemnify any civil money penalties on its D&O policy, leaving every bank director and officer exposed. To respond to this exposure, which can significantly impact the assets of an individual director or officer, Financial Guaranty Insurance Brokers (FGIB) has partnered with an insurance carrier to provide a new separate insurance policy, Civil Money Penalties Personal Protection (CMP) Coverage.

Civil Money Penalties coverage will pay up to $250,000 per director or officer should they be assessed a penalty personally as a result of a regulatory investigation.

Peace of Mind: How the Policy Works

CMP Coverage is a standalone policy purchased and paid for by the director or officer wishing to get insurance to cover his or her personal liability, not the bank. Civil money penalties means monetary penalties or fines imposed by a regulatory agency against the institution-affiliated party. The CMP policy covers only the penalty and does not include defense costs coverage. You can choose a zero, $500 or $1,000 deductible with limits of $100,000 or $250,000.

Civil Money Penalties Pricing Matrix

Individual Deductible Amount Annual Premium For $100,000 Limit Policy Annual Premium For $250,000 Limit Policy
$0 $750 $1,500
$500 $650 $1,300
$1,000 $500 $1,000

*Coverage is subject to underwriting and Surplus Lines Tax & Stamping fee will apply to annual premium(s).

Get Started

  • Download a description of the CMP policy here.
  • Download the application for CMP coverage here.