Bankers professional liability is important. It is a financial protection for financial professionals in case a customer claims a wrongdoing. It is essentially a type of errors and omissions insurance. It protects those who work in the banking industry. When a client sues, without insurance, you have to pay to fight the lawsuit. Additionally, if the client wins, you have to pay the settlement. With insurance, you have peace of mind. Here is what you need to know about it.
What Is Bankers Professional Liability Coverage?
Bankers liability coverage covers a broad range of bankers. From escrow agents, financial planners to tax planners and real estate planners, it can cover many different roles. It does not cover any fraudulent behavior, however. If there are deliberate violations of law or criminal acts, claims won’t be covered. However, it does offer coverage for mistakes and unintentional violations.
How Is Bankers Professional Liability Coverage Used?
Lawsuits against banks occur over incorrect statements, misleading statements, breach of duty or any mistakes involving insurance, real estate, credit cards, brokerage or deposit. For individual banks, a banker may purchase coverage that tailors to his or her unique risks. For instance, investment bankers may need coverage for underwriting.
No matter what industry you are in, liability coverage is crucial.