When you operate a business in a niche field like finance, you can expect a number of unique challenges on your road to success. Statistics from recent years highlight that financial institutions are seeing more litigation than ever before. To properly protect your business and its assets, you must take a look at your options with financial institution insurance.
The first step to finding appropriate coverage for your company is conducting risk assessment. Having a clear idea of your exposures will make it easier to select a plan that properly covers all your bases. Professional liability, for example, is a policy option aimed at scenarios where your business is accused of financial negligence. This type of policy can also be extended to cover commonplace claims like errors and omissions,
A board of directors is a common feature of financial institutions. However, standard insurance will not cover claims made against members of the board. To stay protected, you must consider D&O coverage. This policy option is structured to reduce claims of negligence aimed at high-level executives and members of your board.
Though financial institutions serve an important purpose, this does not mean they are exempt from potential legal trouble. To properly protect your business, take time to learn more about the insurance policy options available to you.