Is the Liability Coverage for Your Directors Adequate?

Maybe not. Credit union directors should take note of a pending appeal in a prominent federal case that would lower the standard for liability for bank directors from “gross negligence” to “ordinary negligence.” If the appeal succeeds it means directors could be sued in situations  where they believed they were acting in the best interests of the credit union—but, in hindsight, made a costly business mistake. [8/17/15]