For those working in the financial industry, there are times when standard liability coverage won’t be enough to cover the actions of their employees or executives. With a banker’s professional liability policy, coverage is extended for claims of alleged errors or omissions in activities involving customers. The professionals who would benefit from this type of policy include those working with:
Mutual Funds
Hedge Funds
Insurance Companies
Financial Counseling
Specifically, a banker’s liability policy addresses financial institutions and the employees working within. The coverage works with both claims of alleged or actual instances and provides the funds needed to establish legal counsels, mount a defense, or even pay out a court judgment. However, if the act in question was committed intentional and criminal intent at the root of the activity, the insurance policy will not pay.
The experts at advise that you work closely with your insurance underwriter concerning the details of your policy. Check on what insured persons are covered, and any potential protections extended to spouses or domestic partners of those name insureds. You will also want to ensure the right of the insured to choose the counsel in the event of a claim. Your policy should have strong noncancelable language and worldwide coverage.
If you are working in the finance industry, protect your liability with a strong errors and omissions policy. The professional liability needs to cover the most vulnerable areas of exposure and risk.