The Insurance Policy Every Financial Professional Should Have

The Insurance Policy Every Financial Professional Should Have

BPL insurance

Banking may seem all buttoned up, but professionals know it is an industry filled with risk. Financial professionals can protect both their organization and their employees by investing in Banker’s Professional Liability insurance or BPL insurance.

Bankers professional liability insurance is, in many ways, a form of errors and omissions insurance, and it protects more than bankers. Bankers is more of a broad term that covers a number of financial professionals, from escrow agents and estate planners to financial planners and tax experts. It covers both part-time and full-time employees, from tellers behind the counter all the way up to the C-suite.

What is BPL Insurance?

Bankers protected by BPL insurance are covered when a customer claims the business was negligent in some way. This might be anything from breach of contract to misleading advertising. It does not cover dishonest or fraudulent behavior, however. BPL insurance helps policyholders by covering expenses associated with a lawsuit. It may also cover judgment payments if the court rules in favor of the plaintiff.

When selecting a banker’s professional liability policy, financial services organizations can often build coverage that best fits its business model. For example, lenders might seek BPL insurance coverage for loans and lines of credit while an investment banker’s policy would focus more on underwriting and security.