In a recently published article in Credit Union Management magazine (June 2014 – Vol: 37, No. 6), three executives from Berkley FinSecure provided valuable insights into the changing risks for directors and officers of credit unions.
The article, “A Bubble of Protection” by Karen Bankston (http://www.cues.org/article/view/id/A-Bubble-of-Protection), related how regulatory, business and technology changes within credit unions are making it even more important that organizations ensure their management liability coverage is keeping up.
Berkley FinSecure executives and D&O experts quoted in the article include Mike Dandini, President; Barbara Ewing, VP and Chief Underwriting Officer for Fidelity and Management Liability; and Jon Martin, AVP Credit Union Program.
Among the important points emphasized by the Berkley FinSecure experts:
- D&O claim defense litigation is increasingly costly and a credit union’s D&O coverage needs to anticipate this potentially overwhelming expense.
- Credit unions, their directors and officers should develop and regularly update a thorough risk analysis to identify regulatory, employment practices and business activity changes that could impact their management liability coverage.
- Credit unions need to make sure their D&O coverage will help protect them against claims relating to on-going technology advancements and evolving consumer protection laws.
- D&O coverage should specifically address the unique needs and business structure of credit unions, as compared to other types of financial institutions, and the insuring agreement should be written clearly and understandably so the credit union can make a knowledgeable decision about cost-effectively covering their risks.
The full article can be accessed through the Credit Union Executives Society (CUES)/Credit Union Management magazine website: http://www.cues.org/article/view/id/A-Bubble-of-Protection
For more information on Berkley FinSecure’s credit union management liability products, click here.