Every business owner understands that there are risks inherent in doing business, no matter in what type of industry they work. Bankers in particular face many unique risks that should never be minimized.
What Risks Do Bankers Face?
As technology gets more sophisticated, risk management in commercial banks becomes much more critical to address. Cybercrime is on a steady increase, but it isn’t the only liability concern that worries bank managers. Other risks include:
- Errors and omissions claims from customers or shareholders that result in financial loss
- Claims of unfair or discriminatory banking practices
- Lawsuits stemming from loss of assets
- Litigation revolving around noncompliant regulatory banking procedures
- Employee fraud, embezzlement or theft
Even if the claim is unwarranted, your banking facility may be liable for expensive legal fees and lost productivity. You and your employees could also be held accountable for certain actions.
Which Risks Are Covered Under Commercial Banking Liability Insurance?
Since each banking institution is different, it is important to discuss your unique risks with your insurance agent. The best commercial banking liability package will cover several issues, including:
- Employment practices liability
- Cyber fraud
- Fiduciary responsibility issues
- Errors and omissions concerns
- Directors and officers liability
- Property assets concerns
Make sure your banking facility and your professionals are protected against unwanted claims with a comprehensive commercial banking liability plan.