Having the right kind of insurance is an important part of enabling your bank to remain operational in case of incidents such as lawsuits and robbery. There are a few kinds of insurance for banks that can be invaluable during these and other events.
1. Professional Liability
Because banks give financial advice they can be held liable for claims of negligence. Professional liability insurance should protect their assets in those cases. It should also include directors and officers liability, which covers individuals in those roles from financial losses or court costs in a lawsuit. Some policies contain employment practices liability coverage for internal lawsuits over issues such as discrimination and sexual harassment.
2. Cyber Liability
Banks provide many online services and store personal data like social security and bank account numbers on their networks. This makes them vulnerable to security breaches. If the network security of a bank were ever compromised, cyber liability insurance for banks would help cover related expenses such as notification costs and loss due to identity theft.
3. Crime Insurance
Especially in the banking industry, it can be important to have crime insurance to protect against a variety of criminal actions like employee dishonesty and wire fraud. It can never hurt to be prepared for events such as kidnap and ransom or extortion.
Never underestimate the loss your bank could sustain due to these and other incidents. Make an enormous contribution to the success of your bank by having the right kind of insurance policies in place.