Bankers Professional Liability

Bankers Professional Liability protects against losses resulting from Wrongful Professional Services Acts. Wrongful Professional Services Acts means any actual or alleged omission, error, misstatement, misleading statement, neglect or breach of duty by an Insured in rendering or failure to render Professional Services.
 

Sample Endorsement
Coverage Summary

Claims Examples
  • A bank acts as depository for ACH transactions of a larger institution. A bank employee transposes numbers on two merchant accounts, causing ACH credits to be deposited erroneously into the wrong account. When the bank discovers the error, the funds have already been withdrawn by the business that had received them. The company incurring the loss sues the bank.
  • A community bank works with a securities firm to provide brokerage services to its customers through a dual-employee arrangement. The bank relies upon the securities firm to supervise the activities of the broker. The broker changes the mailing addresses on several accounts to a post office box, embezzles funds from these accounts and then mails false statements to the customers to hide the missing funds. Upon discovery of the fraudulent activity, the defrauded customers sue the bank for negligent supervision.
  • A small business owner purchases a policy from the bank’s insurance agency, but does not buy business interruption coverage. After his plant has a fire, he sues the agency, alleging that the agent never explained the need for such coverage.
Features
  • Available as an endorsement to the D&O Policy.
  • Professional Services are certain fee-based professional services including, but not limited to, depository services; brokerage services; insurance services; data processing services; real estate services (other than appraisal services); and notary services.
 

Notwithstanding any language to the contrary, nothing contained herein constitutes nor is intended to constitute an offer, inducement, promise, or contract of any kind. All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. For details on the coverage provided by your specific contract of insurance, please refer to your policy. Coverage is subject to underwriting guidelines and may not be available in all states. Limits may be capped for underwriting reasons. Any links to any sites which are not originated by ABA Insurance Services Inc. (ABAIS) are provided only as a courtesy and are not intended to nor do they constitute an endorsement by ABAIS of the linked materials.