At anytime, a banking institution could be sued for a breach of duty, making a misleading or incorrect statement, or any number of other mistakes related to its deposit, brokerage, insurance, real estate, credit card or other services rendered.
For example, a customer might sue a bank for honoring a fraudulent check or a fraudulent wire transfer that may have caused funds to be erroneously removed from the customer’s account. In any event, financial professionals need protection against customers’ claims of wrongdoing.
FGIB Bankers Professional Liability Insurance is a type of errors and omissions coverage that protects those who work in the banking industry and the institutions they work for from the expenses associated with mounting a defense in a lawsuit or having to pay a judgment if the plaintiff wins their case.
Whom and what does the policy cover?
The term “banker” is broad in this context as the professional liability policy may cover everyone, from escrow agents, tax planners and financial planners, to estate planners and more. FGIB Bankers Professional Liability Insurance can cover directors, officers, and full-time, part-time and seasonal workers in these same professions.
Liabilities can arise from claims of a breach of agreed investment parameters, or even perceived underperformance. The plaintiff could claim that the bank was guilty of a lack of due diligence prior to investments, incorrectly executed trades, or demonstrated a failure of internal risk control. For instance, an escrow agent may be accused of a breach of management contracts, or anyone performing transactions with clients could be accused of dishonest acts, and the list goes on.
What isn’t covered are acts performed with malicious intent, such as any action that causes intentional harm, including dishonest, fraudulent, criminal, or malicious acts or omissions of any kind. This includes Illegal acts, like willful violations of any state or regulation committed by an insured, attributable to such persons gaining any personal profit to which they were not legally entitled.
ERISA violations, claims brought or maintained by any insured under the policy, actual or alleged bodily injury, sickness, disease, death, or damage to or destruction of any tangible property, or actual or alleged employment practices violations also aren’t covered. FGIB Bankers Professional Liability Insurance is the right solution for your lending institution, so speak to an agent today.