As crucial as banks are, a financial institution is full of professional liability risk. Allegations of wrongful acts, misrepresenting products or bad advice might lead to lawsuits. It’s important that a bank have BPL insurance or bankers’ professional liability. How do you know where to find an adequate provider? Here is what you should look for in an insurance broker.
Specialty and custom coverage is crucial to a fair insurance plan. While some of the standard policies may be appropriate for your bank, often a financial institution will have its own unique way of running things that requires different types of coverage. Make sure that your broker offers specialty coverage.
A lawsuit can break a business. You could lose all of your assets, on top of your reputation if the claim goes south. Insurance coverage should protect your assets and the integrity of your financial institution.
Covers Defense Costs
Defense costs are pricey. Most bankers want to dispute any allegations. If you don’t have insurance, all of that comes out of your pocket or out of the business. Insurance covers the fees so that you can focus your money where it counts.
Without BPL insurance, you could lose a lot. Even if a lawsuit has no merit, you still have to pay to defend yourself. Professional liability insurance is your best defense.