Working in the financial sector can be tremendously rewarding. Not only do you get to help individuals realize their dreams, you shape the economic direction of the community at-large. Still, being a bank director or officer exposes you to potential monetary penalties that other busy professionals never face. Civil monetary penalty insurance may provide you with the peace of mind you need to better do your job.
Your Employer’s E&O Coverage Is Not Enough
All banks should have an errors and omissions policy. These policies protect the financial institution from most claims. They do not, however, protect a bank’s officers or directors from personally-assessed civil monetary penalties. In fact, banking regulations specifically prohibit indemnification for such penalties. Since you buy your own CMP insurance, it falls outside the scope of the E&O limitations. This coverage protects you for penalties assessed to you individually. Since the bank can’t pay these, you are left to come up with the cash if you don’t have CMP protection.
Work With an Experienced Provider
With the right civil monetary penalty insurance, you don’t have to worry about costly fines following a regulatory investigation. Rather than leaving your financial well being and career success to chance, talk with an experienced agent about how CMP coverage fits into your planning strategy.