Financial institutions of all types, from community banks to credit unions to savings and loan companies are trusted with dealing with large sums of money from their clients. Handling this money comes with a certain amount of risk, though, and a Bankers Liability Policy (BLP) is a way for the institution to protect itself and its employees from that risk. With a BLP, the institution is protected from lawsuits that might stem from omissions or errors made by its staff, whether intentional or not.
What Does a BLP Protect?
A BLP provides three areas of protection for the financial institution:
- The institutions assets and integrity are shielded from attack.
- Lawsuits cost money, even those without merit and a BLP can cover the cost of defending the institution from the lawsuit. If damages are awarded, the policy pays them up to the policy limits.
- A BLP can be set up to provide specialty coverage for areas that are not properly covered by the institution’s other policies.
Your financial institution needs to be covered properly, which means it needs a Bankers Liability Policy. Whether it is purchased as a standalone policy or as part of an existing policy, a BLP is a wise investment for any financial institution.