Your institution probably handles thousands of dollars every day. When dealing with those kinds of figures, no matter how careful you are, mistakes can occur. Bankers professional liability insurance is an important part of your insurance portfolio, but it won’t cover every one of the financial risks. Here’s what it doesn’t cover:
No one wants to think about a director or officer of a financial institution committing fraud, but it’s more common than anyone realizes. BPL insurance will not cover your institution.
Professional liability coverage won’t cover a claim if a director purposely forgets to file an important document or offers incomplete advice.
Your general liability policy covers slips, trips and falls at your institution. It’s important to know and understand the limits of each policy you have.
Your insurance portfolio includes workers’ compensation insurance to handle injuries of people on the job.
BPL insurance limits its coverage to errors and omissions, not claims you make in the process of doing business.
If a tornado blows through your institution, your BPL insurance won’t compensate you. However, property insurance will most likely help you out.
Professional liability insurance comes in handy when a mistake is made, and it costs your client money. You and your board of directors can have peace of mind.