If you work in the banking sector, you know scrutiny is at an all-time high. To protect your organization from costly judgments and settlements, you no doubt have a comprehensive errors and omissions policy. Did you know, though, your bank’s E&O coverage does not protect individual directors and officers from civil money penalties. If you are looking to safeguard the assets of individuals in your organization, civil money penalties insurance may be your best option.
E&O Policies Have Limitations
Federal banking regulations prohibit financial institutions from indemnifying directors and officers from civil money penalties through their E&O policies. This prohibition leaves individuals vulnerable to potentially devastating penalties.
CMP Stands Alone
A CMP policy is independent from your bank’s existing E&O coverage. These policies cover penalties up to the plan’s limit should a director or officer receive an individual penalty following a regulatory investigation. Because the CMP policy is not part of the E&O plan, it does not violate federal banking rules.
With civil money penalties insurance, your bank’s directors and officers may have the peace of mind they need to better serve your customers. Rather than leaving your organization’s success to chance, talk to a skilled agent about how CMP coverage can enhance your E&O policy.