Directors & Officers Liability

The Directors and Officers Liability Insurance policy is a critical component of the bank’s insurance portfolio and lawsuits against this policy are increasing. Terms of coverage are complicated and vary from one insurer to another. Increased regulatory focus and recent legislation must be addressed when structure your coverage and appropriate limits are very important.

We build your D&O coverage based on a number of factors: your peer group average limits; your bank’s asset size; ownership basis; market focus, and existence of non-traditional banking activities, such as insurance agencies or investment subsidiaries. We also include the appropriate Entity and Professional Liability endorsements to conform with your bank’s exposure. Since D&O policies are not regulated, we generally offer renewal options to add or increase coverage to keep abreast of the comfort level of your board of directors and senior bank management.

As with your other major insurance policies, we review coverage annually and take your bank to market every three years to assure fair premiums and to update your management on any industry improvements in coverage. You will receive competitive proposals from at least three of our insurance carriers.

When renewal terms are selected we prepare a comprehensive description of renewal terms for review by your board of directors and senior management. You will also receive an executive summary of coverage for your use when dealing with auditors and regulators.