Repossessed Property Coverage For Your Bank

Standard bank property and general liability insurance exclude both physical damage and liability coverage for repossessed autos, watercraft, and aircraft. You can usually add coverage to your auto policy for repossessed autos (and in some cases watercraft). The best practice is to talk with your agent if you repossess autos, watercraft, or … [Read more...]

Is One of your Buildings Vacant?

Your insurance limits coverage on buildings and locations that are vacant. For example, under most property insurance policies, a vacant building is valued at actual cash value rather than replacement cost - meaning your loss payment is reduced by depreciation. First, what does "vacant" mean? If you are a tenant vacant means a location that … [Read more...]

Flood Insurance Changes With New FEMA/NFIP Rating Plan

In my agency days, we had file drawers filled with flood insurance maps.  We had to find the property location and try to decide what flood zone a building was in. Then came maps on the internet and now FEMA is reworking the approach to rating policies. Risk Rating 2.0 is supposed to increase the accuracy of rates - and improve … [Read more...]

Multi-Factor Authentication Hardline By Insurers

At your bank's next renewal you will be asked if you require multi-factor authentication when your people are accessing the bank's computer system. If you say no you might not be offered a renewal. Travelers started taking this stance a few months ago.  Other insurers are now following along. Some insurers will offer you a grace period.  Some … [Read more...]

Cyber Risk – Ransomware – Cyber Extortion

Almost every call I get from my bank clients involves cyber insurance. We talk about how the bond responds, how cyber liability insurance responds and how property insurance responds. We talk about the move of coverage for ransomware attacks from the bond to cyber liability. We talk about trends in the coverage and what I see happening in the … [Read more...]

Workers Compensation Dividends

I just heard that the Maine workers' compensation insure MEMIC is no longer paying dividends to former policyholders.  So, if you leave MEMIC you lose your dividend payment for the years you were a MEMIC insured. To those not with MEMIC in every other state, be sure you know what you are giving up if you change workers' compensation … [Read more...]

Notarizing Without Being Face-2-Face

I got this notice from the State of Maine recently... In short, emergency measures in Maine allow notaries to notarize without in-person proof of identity.  That is all well and good. However, if you do that and there is a lawsuit because the person was not who they say they are do not expect your banker's professional liability insurance to … [Read more...]

Indemnification & Hold Harmless Agreements

I like hold-harmless agreements. Basically, they say I will not sue you and you will not sue me. I don't like indemnification agreements. Basically, they say if you get sued I'm supposed to defend you and pay any award against you. In the absence of an indemnification agreement, you pay your liabilities and I pay mine. You buy insurance (or … [Read more...]

Why Can’t I Hire You By The Hour?

I do not work on an hourly basis. I see such as unethical. A flat, value-based fee is the only way I get paid. A business hires a consultant because they have a problem or concern. The faster the problem is solved, the better. Getting paid by the hour incentivizes S----L----O----W work. Hourly-based fees put the consultant's interest at odds … [Read more...]

Unbiased Means My Loyalties Are To You, Only

To my knowledge, I am the only insurance consultant who is, by my definition, unbiased. I don’t accept fees or commissions from insurance agents. I don’t accept fees or commissions from insurance companies. I don't accept gifts, meals, ballgame tickets or anything from insurers or agents. I don’t let insurers buy me meals. I don’t … [Read more...]