3 Claim Areas Against Banking Professionals

If you work in the financial industry, you are probably aware of the great risks that deal with theft, fraud, cybercrime, employee dishonesty, and compliance with government regulations. No doubt you carry a banker’s professional liability insurance policy to help defray the costs associated with claims in these areas, but all too often it takes an experience of loss to understand how the policy works. Here are two common claims brought against banking professionals.

  1. Lender Liability

A borrower is told by the loan officer that the loan request will be funded. The borrower makes business plans and purchases according to the verbal guarantee, yet subsequently, the loan is denied. The borrower files suit against the loan officer and company for damages and lost business opportunities.

  1. Professional Services Liability

A bank employee transposes numbers on the ACH transactions for a merchant account, causes funds to deposited to the wrong account. The business receiving the funds withdraws them and refuses to return them when the bank notices the error. The client that did not receive the deposit sues the bank for the loss.

In order to protect your company from losses related to these situations and others, the information found at https://www.fgib.com advises that a strong professional liability policy be taken out for the institution. The financial costs of legal action can be damaging to your company, as well as the resulting loss of business from client mistrust.

Skip the Captive Agent Routine

Skip the Captive Agent Routine

When you are shopping around for an insurance policy, there will be a lot of companies and agents to choose from. You might get bogged down comparing the pros and cons of the different companies before you even get around looking at the actual coverage you need. Rather than lose time trying to understand big commercial insurance companies, take a look at a list of independent insurance agents and see how beneficial working with one of them will be. You can find a list like this at https://www.neilsonmarketing.com/.

Reasons for Choosing Independent

Generally speaking, there are four primary types of insurance needs.

  1. Auto
  2. Property
  3. Health
  4. Commercial

You will first want to choose an agent that has the experience and ability to offer coverage in the area you are seeking. While some property and auto agents may be able to offer similar commercial policies, you will have better results and prices when you limit your choice to a broker with specialty areas of focus. An independent agent is able to shop for different rates from several different companies all at the same time. By doing so, it not only saves you time, but it also shows you where you can get the best rate. Captive agents, or those who work for one company, are restricted to their company`s policies and prices. Independent agents give you unbiased advice while finding you the best rate.