When a customer alleges that you overlooked an important point or mishandled a detail, your bank or other lending institution could be liable for damages. These types of lawsuits can be especially devastating to smaller community banks and credit unions that do not have funds available to cover court costs and liabilities when they a customer sues them. The answer to this problem can come in the form of Errors and Omissions (E&O) coverage. An E&O policy protects your bank from losing everything in the event that a customer accuses it of incompetence. Your agent can help customize your financial institution insurance to meet your particular needs.
Regular insurance policies will not usually cover the expenses associated with lawsuits. Communities depend on their financial institutions for the variety of benefits they receive from them. By including this type of coverage in your existing policy or having your agent tailor one for your organization, you are helping to ensure that your customers will continue to have access to your services under a variety of unforeseen circumstances. Financial institution insurance protects your organization’s assets from being at risk of loss due to charges of ineptitude. This type of insurance also protects smaller establishments from damage when the accusations do not have any validity.