Since the Great Recession of 2008 and the financial crisis that ensued, bank officers and directors have invested in coverage for civil monetary penalties. The necessity for coverage is due to the increasing risks the top executives of financial institutions have incurred since 2008. Beyond financial institutions, directors and officers of healthcare corporations have seen a rise in civil monetary penalties arising out of HIPAA violations.
The civil monetary penalty policy is used as an offensive maneuver for high-ranking business officials. The policy aims to cover the increased exposures financial executives now face. Highlights of coverage for civil monetary penalties:
- Limit of either $100,000 or $250,000
- No defense cost coverage
- $0, $500 or $1000 deductible options
In September 2016, the Department of Health and Human Services adjusted civil monetary penalty maximums for inflation. Between HIPAA violations and the effects still felt from the 2008 financial crisis, the amount of civil monetary penalties has risen in recent years. Consider a civil monetary penalty policy in combination with other insurance policies such as professional liability.
The financial industry is still healing making coverage for civil monetary penalties worthwhile for bank officers and directors. The rise in litigation and penalties makes the added insurance a beneficial investment for financial and healthcare institutions alike.