Facing Financial Litigation
As with any other industry, litigation can be a huge financial problem for those working in finance. Financial litigation can be divided among civil, administrative, and criminal claims. Facing a crisis like this can be costly, but a bankers professional liability insurance policy can help defray the cost.
Who It Affects
Financial litigation isn’t just a problem for bankers. It usually revolves around claims or investigations into both individuals and entities that deal with money or financial transactions.
Those who are included in this group include:
Consumer finance companies
Payment processing firms
Credit card companies
Hedger or private equity funds
What It Concerns
Usually, the lawsuits that arise within the finance industry include loans, transactions, trades, disputes overstocks, and financial products. A bankers professional liability insurance policy can help in these situations, but not where willful neglect or criminal activity took place. There are many regulatory agencies that oversee the banking and securities trade, which helps keep companies honest. However, it also gives consumers more to question, and lawsuits often arise from claims of a regulatory violation.
If your company is being investigated for legal violations of federal and state securities laws, your lawyer should be your first phone call. Your second contract should include the insurance agency who holds the policy on your professional liability coverage.