While banks are primarily considered a safe place to keep one’s money and certain assets, banks have grown into more complex financial institutions that involve services beyond secure storage. Many banks may involve financial advisory and other more personal actions that directly affect the client of the bank. The more of these types of services that you are able to offer, the more you’ll be able to help others and bring in business. However, it also puts you at a higher risk of being sued, as there are more places where mistakes can be made and something can go wrong. In order to safeguard your bank in a case of claims being made against it, you should have professional liability insurance for bankers.
What Does Professional Liability Cover?
In cases where claims are made regarding the professional actions of your bank being done incorrectly or poorly, professional liability insurance for bankers can offer financial coverage for the legal fees involved. This can include:
Payments needed for the attorney
Settlement costs in cases where it is needed
Any additional court fee
While insurance companies will typically cover the legal costs whether or not the claim is with merit, the coverage will not apply to criminal behavior such as dishonesty and other fraudulent acts. However, honest mistakes can happen and professional liability insurance for bankers can cover them.