Choosing CMP Insurance
Leading a bank is an excellent career move. Not only does being a financial officer or director give you insider knowledge about the banking sector, it boosts your leadership capabilities. Of course, working in an official capacity at a financial institution exposes you to some liability. By purchasing civil money penalty liability insurance, you have the resources you need to protect your career and finances.
A Banks Coverage Is Usually Inadequate
Most banks have E&O coverage. This insurance protects the financial institution from claims arising out of common errors and everyday omissions. The coverage does not, however, protect you from claims in your individual capacity. Since federal banking regulations expressly prohibit your banks E&O policy from covering penalties assessed to you personally, you must pay them yourself.
CMP Coverage Bridges the Gap
If you are assessed a penalty following a regulatory investigation or audit, you may not have the financial resources to settle it. With a CMP policy, your insurer pays the penalty for you. Remember, your employer cannot pay CMP premiums. On the contrary, to benefit from this protection, you must purchase it independently.
With good civil money penalty liability insurance, you stay focused on developing your career. Rather than suffering a substantial financial setback, work with a qualified agent to tailor a CMP policy to meet your needs.