FGIB:Providing Sound D&O Insurance Solutions

The boards of directors of community banks and other financial institutions today face a plethora of risks due to a number of factors: increased regulatory scrutiny; a heightened focus by the U.S. Securities & Exchange Commission (SEC) on enforcement of ‘gatekeeper’ duties; the increased globalization of even smaller businesses; and increased vulnerabilities to fraud, cyber risks, and environmental issues, among others. Even day-to-day management decisions can lead to claims against directors and officers, as well as the institution itself.

Financial Guaranty Insurance Brokers (FGIB) works with top-tier insurers that specialize in writing Directors & Officers (D&O) Liability insurance programs for community banks, commercial lenders, Financial Technology (FinTech) companies and other financial institutions.

Who is Insured Under a D&O Policy

D&O insurance policies offer liability coverage for company managers to protect them from claims that may arise from actual or alleged wrongful acts when acting in the scope of their managerial duties or while serving on the company’s board of directors. Policies can be designed to:

  • Cover the personal liability of company directors and officers as individuals (Side A Coverage).
  • Reimburse the insured company in the event it has indemnified its managers in order to protect them (Side B Coverage).
  • Ensure there is corporate coverage whenever the corporation is sued along with the directors and officers (Side C Coverage).

A D&O policy will pay for costs incurred in defending the matter as well as financial losses sustained by the covered individuals and the company. In addition, extensions to many D&O policies cover managers’ costs generated by administrative and criminal proceedings or in the course of investigations by regulators or criminal prosecutors. A D&O policy does not cover fraudulent, criminal or intentional wrongful acts.

Financial institutions are under continuous scrutiny from shareholders, creditors, employees, regulators, and other interested parties. At FGIB, we can help protect you and your directors against the myriad of D&O exposures you face with a comprehensive, tailored policy to meet your needs.