Summaries
of Various Policies |
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The following are brief descriptions of various policies typically
used by financial institutions in the risk management process. Many of these polices are
not standard from carrier to carrier, and even when they are standard, they may be amended
to include or exclude any number of coverages. Care should be taken to select the
appropriate policy and insurance carrier that meet the needs of the financial institution.
These entries are found under Products & Service Summaries at bottom when you click on
"Insurance Policy Summaries." |
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- Directors and Officers
Liability Insurance
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The Directors
and Officers Liability policy pays on behalf of any person, who is or may become an
officer or director of the named corporation, all sums which may be made against them for
any covered wrongful act. A "Wrongful Act" may be defined as any breach,
neglect, error, misstatement, omission or other act committed or wrongfully attempted by
an insured, or alleged to have been committed by an insured, solely by reason of their
being directors and officers of the company. There is no standard D&O liability policy
and thus the definition of a "Wrongful Act" varies from policy to policy. |
- ERISA Fiduciary
Liability Insurance
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The
ERISA Fiduciary Liability policy protects the plan, corporate sponsor and individuals
acting as Trustees or Fiduciaries from claims against them alleging wrongful acts
committed or alleged to have been committed in their capacity as a fiduciary. There are no
standard ERISA Fiduciary Liability policies; therefore the coverage provided by each such
policy may be different. |
- IRA/Keogh Errors and
Omissions Insurance
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The
IRA/Keogh Errors and Omissions policy provides protection against legal liability arising
from negligent acts or errors or omissions as administrators or trustees of individual
retirement (IRA) or Keogh accounts. Coverage is normally provided to the company and to
directors, officers and employees. |
- Employment Practices
Liability Insurance
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The Employment
Practices Liability policy provides coverage for losses arising from covered
"Wrongful Employment Acts" or such alleged acts. The definition of
"Insureds" can include the company, the directors, the officers and the
employees depending upon the elections made. Specific coverage can vary depending upon the
policy language. Generally, however, coverage is provided for wrongful termination,
discrimination and sexual harassment. Third party claims may or may not be covered
depending upon the policy form used. |
- Bankers Professional
Liability Insurance
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The Bankers
Professional Liability policy protects the company and its employees from claims involving
alleged or real errors, omissions, imprudence or mismanagement that have a negative impact
upon the financial position of others. There are no standard policies. Coverage provided
by such policies may be more broad or more limited depending upon the coverage offered by
the carrier and the coverage selected by the insured. |
- Trust Errors and Omissions
Insurance
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The Trust Errors
and Omissions policy provides protection for the company and the insured persons against
liability arising out of "Wrongful Acts" while acting in the capacity of
trustee, administrator or custodian. "Wrongful Acts may be defined as any actual or
alleged act, error, omission, misstatement, misleading statement, neglect or breach of
duty that occurs when acting in such capacity as trustee, administrator or custodian. |
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