Banking and financial institutions need an errors and omissions insurance policy to protect against wrongful acts while performing professional services. Unlike a traditional e & o policy, bankers professional liability has specific coverages the financial industry needs. Ideally, the policy works in conjunction with a directors and officers policy.
Many local banks offer brokerage services by working with a securities firm. If the securities firm mishandles the client’s money, the bank could be sued on grounds of negligent supervision.
Banks offer a variety of services and endorsements to their clients such as insurance policies. If something goes awry with a policy or service endorsed by the bank, the client could sue the bank for misleading them.
Clerks, tellers and other professionals make mistakes. A simple transposed or wrongly typed number can cost the bank or a client money. The bank not only eats the cost of wrongly transferred funds but may also be sued by the business who incurred the original loss.
For more details regarding the benefits of having a bankers professional liability insurance policy, speak to an agent or broker specializing in the financial industry. They have the knowledge to analyze the institutions risks and find the right coverage options. Don’t wait for a lawsuit to arrive before getting the protection your bank needs.