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BOND

DIRECTORS AND OFFICERS LIABILITY

EMPLOYEE PRACTICES LIABILITY
Like all corporations, financial institutions require quality insurance coverage to protect against legal liability to other parties.  Financial institutions are vulnerable to litigation, particularly because the high visibility, and "public" nature of their business.   

Lenders Financial Insurance Services works with several leading insurance providers.  We can provide competitive quotes,  supported by discussion and debate, so that senior management is thoroughly aware of the coverage.

Fortunately, with Insurers competing aggressively for this business, premiums are likewise competitive, and this amounts to good fortune for financial institutions.

OFFICERS AND DIRECTORS LIABILITY

When corporations are sued, all or some of the Directors and Officers may be implicated. In today’s litigious society, the spiraling cost of litigation alone can substantially impact the institution’s bottom line.

Due to their high-ranking and highly visible positions within the institution, Directors and Officers have enormous exposure to their own personal financial loss, in the event of legal claims against the corporation.

Coverage includes:

  • Derivative Claims
  • Violations of Federal and state securities laws
  • Mismanagement of the financial institution
  • Discrimination, Harassment, and wrongful Termination
  • Antitrust
  • Breach of Fiduciary duty
  • Deceptive Trade Practices
  • Fraud
  • Loss of opportunity for growth and profit
  • Conflict of interest

BOND

As D&O coverage provides protection from outside the corporation, Bond provides protection from financial loss caused within the institution.

Common...

EMPLOYEE PRACTICES LIABILITY

Employee practices claims are disruptive to any organization. Employee Practices Liability (EPL) protects financial institutions against loss, in the form of damages and defense costs, which result from employee practices disputes. Defense costs often exceed the actual settlement payment.

Today, a growing number of employees are cognizant of the issues of sexual harassment age discrimination, and other "barriers", whether legal or illegal. As a result, Harassment charges have increased 200% in the past 20 years.

EPL protects the financial institution, and its employees, from claims alleging wrongful employment practices, including:

  • Wrongful dismissal
  • Misrepresentation
  • Violation of employment discrimination laws
  • Sexual or other workplace harassment
  • Wrongful deprivation of a career opportunity
  • Retaliation

In addition to having the proper insurance coverage, a financial institution should also periodically review its employee practices procedures. Fortunately, most Insurers (that offer EPL coverage) offer assistance in creating, evaluating, and updating these procedures.

In short, the best deterrent to employee practices claims is to have proper internal procedures…with frequent review of them.
 

Lenders Financial Insurance Services
(248) 689-2001
(855) 313-1468 (fax)