A Closer Look at Professional Liability for Financial Institutions
Financial institutions face a range of risks unique to their industry; it is no surprise that many specialized insurance policies have been created to help financial institutions manage these risks. In addition to professional liability financial institutions have to select policies that are tailored to the particular sector of the financial industry that they serve.
Professional Liability Coverage
You can think of the professional liability financial institutions select as a specialized type of errors and omissions policy. This policy helps protect the institution against clients who make allegations of breach of duty or other forms of professional misconduct. Unlike some other forms of professional liability coverage, the policies issued to financial institutions may include features such as:
- Coverage for punitive damages
- Coverage for exemplary damages
- Guarantee of the insured party’s right to select their own legal counsel
- Noncancelation of policy except when premium is unpaid
- International or worldwide coverage
In many ways, financial institutions receive some of the most competitive coverage within the insurance industry.
Who Does this Policy Cover?
The liability coverage offered to financial institutions insures a wide range of employees. Full-time and part-time employees are insured, as are temporary workers, seasonal employees, directors and officers, volunteers, leased agents, and others. Your policy may also insure equivalent employees who work outside of the United States.
If you want to know more about the coverage provided by your professional liability policy, talk with your insurance agent. They can help you address any concerns you might have.