Insurance Consulting For Banks

 

Unbiased, Fee-Only Bank Insurance Coverage Reviews and Expertise

Your bank’s insurance is limited. Your risks are limitless.

I have the skills, experience, and knowledge to assure you that the insurance coverage you buy for your bank is the best the marketplace has to offer.

  • I never sell insurance.
  • I never accept fees or commissions from insurance agents or insurers.
  • I never accept gifts or gratuities from agents or insurers. I don’t even let them buy me lunch!
  • Thirty years of helping banks buy the right insurance.
  • Over three hundred banks as clients – and counting…

Insurance help for the banker who buys insurance for his or her bank.

 

The best time to have your insurance reviewed
is a month before you have an uninsured loss.

 

Having an unbiased bank insurance review is just good business. Regulators, stockholders, and stakeholders (as well as your boss) expect that you know you have the right insurance coverage. The expectation is that you have no coverage gaps. Insurance overlaps are bad, too – you’re wasting resources.

Without a comprehensive review of your bank insurance, how will you know you have a problem? Wouldn’t you like to know sooner than later?


Why Banks Hire Me For An Insurance Review

I work with small- and medium-sized banks all over the US. Each hires me for its own reasons. Most seem to have small doubts about their insurance that grow over time to become looming questions.

  • Insurance questions put to your agent are not answered convincingly.
  • There are doubts about the quality of your bank’s insurance.
  • The bank’s insurance agent sits on the board, which is a potential conflict.
  • The bank’s insurance agent is related to the CEO.
  • The CEO/CFO/CRO wants to be absolutely sure of coverage adequacy.
  • Your agent does not work with many banks.
  • The bank board wants an independent insurance review.
  • It has been some time since anyone besides your agent has reviewed your bank’s insurance.

My review  will be quite straightforward…

You send me the policies you want me to review. I go over them (usually fortified with lots of coffee) and report my concerns to you.  I put my thirty years of insurance experience to work for you.  I use the knowledge I have gained from my reviews of insurance for over 300 banks to improve your bank’s insurance coverage. You get access to my bank-insurance-brain. I’m told I talk about bank insurance issues nobody else talks about.

I’m told I make bank insurance understandable.


What’s The Impact On Your Financials Of A $500,00 Uninsured Loss?
What’s The Impact On Your Career?

 

Your Options:

Option 1 – I Review Your Management Liability Insurance Only

Bank Insurance Coverage

A review of your directors’ and officers’, management liability, employment practices, bankers professional, lender liability, cyber liability, and fiduciary liability. Project Fee: $2,200

Option 2 – I Review Your Bank Specialty Insurance

A review of your bank specialty policies – directors’ and officers’, management liability, employment practices, bankers professional, lender liability, cyber liability, fiduciary liability, and your financial institutions fraud-bond. Project Fee: $3,800

Option 3 – I Review Your Bank Specialty & Standard Lines of Insurance

A review of your bank’s specialty insurance – directors’ and officers’, management liability, employment practices, bankers professional, lender liability, fiduciary liability, cyber liability, financial institutions fraud-bond, your property insurance, general liability, workers’ compensation, umbrella liability, and auto insurance. Project Fee: $4,500

Option 4 – I Review All Your Insurance Policies

A review of your management liability, fraud-bond, standard lines, and your lender asset protection insurance – directors’ and officers’, management liability, employment practices, bankers professional, lender liability, fiduciary liability, cyber liability, financial institutions fraud-bond, your property insurance, general liability, workers’ compensation, umbrella liability, auto insurance, mortgage impairment, REO property, forced placed property, forced placed flood, and lender’s single interest. Project Fee: $6,000

 


The Review Process – How It Works & What Happens

You send me your policies and a summary of current insurance (usually from your agent). You complete an exposure form that helps me uncover unusual risks your bank might have. We have a brief conversation about the process and your bank. In about two weeks I report my ideas, concerns, and recommended strategies to you.  I point out the gaps and overlaps in your bank’s coverage.  I give advice on the amount of coverage you buy, and suggest areas where you should consider changes. My report is delivered in a conference call.  You’re welcome to invite key officers, directors, or your entire board to the session.

I present my findings, and we discuss options. Your team is free to ask questions, challenge me, and make suggestions.  These free-flowing sessions last from ninety minutes to two hours. Your team can ask as many questions as they like. Insurance clarity is the objective.

Frankly, the phone sessions are my favorite part of my job. Pragmatic, useful, valuable information is gained by your management. It’s in these sessions that the rubber meets the road.

After the session, you get a summary of the conversation and a listing of the suggested tactics.  From there you decide how you want me to proceed.  You can work with your agent, or have me handle the mitigation conversations.  I am available to help you in any way you need me.

 


How You Start The Process

Let’s start with a phone call to discuss your bank’s current insurance concerns.  Let’s talk to see if you need me.  Let’s talk about what value I can bring to the table. Call me at 207-284-0085. I’ll answer the phone or get back to you in a few minutes. Call me. Of course you can email me too (Scott@ScottSimmonds.com).

 


Want To Cut To The Chase And Move Forward?

Perhaps you are ready to go ahead. Here’s my standard bank contract.  Sign it and get it over to me.  I can put you right on the schedule – usually we can do the review conference-call within two weeks of when I receive your policies. My objective is always to move things forward quickly. The best time for a bank insurance review is the month before you have an uncovered loss.

 


Frequently Asked Questions

How long until you get the coverage report to us?

It depends on scheduling.  I usually can get you on the calendar within two weeks of when I receive your policies.  My practice is to schedule sessions as soon as I have been paid and have your policies. I understand that time is important. Also, claims can happen at any time.  The sooner we ID an issue the better.

How Do We Get Our Insurance Policies To You?

Many banks scan the policies and email them. You are free to mail a “hard-copy” copy if you like. If it is easier, use my secure download page to move files directly from your computer to mine.

Will your review reduce our bank insurance premiums?

Sometimes. Usually I find gaps in the insurance coverage or adjustments that need to be made – that can mean additional premium. Would you rather spend $1,000 in extra premium or have a $500,000 uninsured loss? Sometimes my recommended coverage additions can be negotiated at no additional premium. That’s where my expertise helps in the mitigation of the issues I find.

Do you review our employee benefits and bank-owned life insurance?

No. These are specialty areas of insurance that frankly don’t interest me. To do benefits and life insurance takes a unique skill set that I am just not interested in acquiring. I’d rather be great at my part of the insurance business than mediocre at all types of insurance.

Do you sell insurance?

Never. I don’t sell insurance. I don’t accept fees or commissions from insurance agents or insurance companies. I never accept gifts or gratuities from insurance agents or insurance companies. My only interest is the best interest of you, my client.

Do you work in personal insurance?

Rarely. Sometimes there is an individual question or issue. I’m glad to pitch in on that.

After the first call, you make us talk with some assistant. Right?

No. You call me, you get me. You email me, I respond. I return all phone messages within ninety minutes and emails within a business day. You hire me, you get me. I answer my own phone and respond to emails sent to me.

What if I don’t know what questions to ask? I’m no insurance expert.

In the review, I provide a list of items that need to be addressed, and recommendations on how to address them. You work with your agent, and I am available to help. I can even talk with your agent if that will make things easier. We can set up a conference call to talk about the coverage concerns.

How responsive are you to calls and emails?

I promise a callback within ninety minutes and a reply to emails within a business day. Frankly, most times I answer my phone since it allows me to deal with issues quickly. I have set up my practice to provide an exceptional level of service to my clients, and I want you to renew year after year.

How do we know if you are any good?

I’m glad to provide references. You can also look at my client testimonials.

Our bank owns an insurance agency. Why should we hire you?

Your bank-owned agent probably does not work with many banks. I can offer special expertise and experience. I don’t take anything from your agent, but I supplement with specific and current bank insurance knowledge. Are you sure that your agents (as good as they probably are) have expertise in bank insurance? Will your outside board members be confident in the review your own people provide?

Do we have to change insurance agents to work with you?

Absolutely not. I’m not an insurance agent. Many community banks have a close relationship with their agents. These are important and often should be preserved. I understand the community bank business.

By the way, I have no financial ties to any insurance agent or insurance company. I never sell insurance and never accept fees or commissions from the insurance agents or insurance companies I work with. I don’t even let them buy me lunch. I don’t invest in companies that own insurance agencies or insurance companies. (I do hold a few mutual funds that probably own an exceedingly small amount of insurance stock.  My investment portfolio is professionally managed.  While it is not a blind-trust, I do not make individual investment decisions.)

 


The Mentor Option – Unlimited Insurance Expertise

Frankly, this is not for every bank.  Most banks hire me to review coverage then retain me to be an ongoing part of the team.  However, I often hear, “I wish I’d done the mentor program from the start.”  It is the option that provides the most value. Starting here is more economical and beneficial to the bank.

I review all your policies (directors’ and officers’, management liability, employment practices, bankers professional, lender liability, fiduciary liability, fraud-bond, property, liability, auto, workers’ compensation, umbrella, mortgage impairment, REO property, forced placed property, forced placed flood, and lenders single interest).  I’m also available for any insurance issue that comes up during the year.  Twelve months of unlimited help and assistance.  Claims, renewals, mergers, acquisitions… You call me on any insurance issue. Annual Fee: $10,500.

The best way to start the mentor option is a phone conversation. Call me at 207-284-0085. Feel free to email me too. Scott@ScottSimmonds.com.

 


We Can Start Right Now

There are two ways you can get started right away:

Your first option is to call me (207-284-0085) and we can talk about your bank and your insurance. Let’s talk about the issues that concern you. Maybe you’re more comfortable emailing and setting a time for a phone call (Scott@ScottSimmonds.com). I’m glad to.

Perhaps you are all ready to go forward with a review of your bank’s insurance. Here’s my standard bank contract. Sign it and send it over to me.  I can put you right on my schedule – we can usually do the review-conference-call within two weeks of when I receive your policies. When I get your signed contract I’ll contact you to get the process started.

My objective is always to move things forward quickly.

The best time for a review of your insurance is right now – let’s find the trouble before you have an incident.  Let’s talk. Call me at 207-284-0085 or email me.