Claims Examples

Bankers Professional Liability

≡ 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 erroneously deposited into the wrong account. When the error is discovered, the funds have already been withdrawn by the business that had received them. The company that incurs 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.