Bank Directors Face Unique Risks
Financial institutions usually have a D&O insurance policy to cover the bank-related activities of directors and officers. While such a policy is a good idea, it cannot protect a banks director from civil money penalties for personal malfeasance. That’s because federal banking regulations prohibit financial institutions from individually indemnifying their leaders in their D&O policies. Nonetheless, in their professional capacities, directors and officers face unique personal risks that carry potentially significant monetary penalties. Savvy bank directors, then, often choose to purchase civil money penalties insurance to protect their individual assets.
Extra Protection for Peace of Mind
Civil money penalties insurance is for financial institution directors and officers who want their own, individual protection. While the banks D&O policy covers professional liability, many officers recognize they have financial vulnerabilities for their individual actions. A CMP policy fills the gaps created by the banks D&O policy, boosting peace of mind for directors and officers.
Comprehensive Coverage for Complete Protection
Every day, professionals who work at financial institutions face costly financial penalties tied to the work they do. While D&O coverage provides some protection, many directors and officers choose to purchase their own CMP policy to create comprehensive protection. Leading a bank can be tremendously rewarding. Nonetheless, to get the most out of the profession, banking directors often realize the benefits of civil money penalties insurance.