Credit is no new kid on the block, but it’s being used today in ways never contemplated by the first banks to peddle plastic to eager consumers. Those once traditional banks have undergone significant transformations and in recent years have been joined by an array of alternative lenders that have markedly altered the face of the financial services sector.
Both traditional and alternative lenders face a host of exposures, particularly in the professional liability arena. From honest mistakes to fraud, embezzlement, and misappropriation, financial services providers are vulnerable to claims and lawsuits that can cost millions and drive smaller firms out of business.
That’s the bad news. The good news is that resources exist that can deliver a broad array of coverages for financial services providers. One such resource is managing general underwriter Business Risk Partners (BRP), which recently brought on Vincent Cisternino to head its financial services practice.
Cisternino identifies three key trends that are transforming the space and explains how those trends are creating new professional liability exposures.