Depositor Liability

Depositor Liability coverage protects against losses arising from wrongful acts in establishing, maintaining, administering or servicing any FDIC-insured deposit account or processing any transaction related to such account.

Depositor Liability coverage is as important as Lender Liability coverage, but many banks do not realize the magnitude of the exposure. Over 30% of paid losses are related to Depositor Liability. Claims result from the bank honoring instruments with forgeries or improper endorsements, erroneous asset transfers, and general account errors.

Depositor Liability Pie Chart

Availability

Coverage is available as:

≡  Part of the Broad Form Company Liability (BFCL) Endorsement;

≡  Part of the Bankers Professional Liability (BPL) Endorsement; or

≡  A separate Depositor Liability Endorsement.