Client Question – The People You Hire…

From a Client: One question: When hiring applicants – what is the insurance view on hiring individuals that have had some credit issues in the past, i.e. delinquency, foreclosure, and charge-offs, if they are in a non-cash handling position?   My Reply: If your regulators are OK with them the insurers are OK. The only issue … [Read more...]

Charitable Foundations and Your Insurance Policies

Your organization may have set up a charitable foundation. That entity should be listed on all your insurance policies. By design, a foundation is not a subsidiary by the standard definition used by most insurance policies. While you may have common board members, your board is not the board of the foundation. Your bank does not "control" the … [Read more...]

ABA to Distribute $2m to Insured Banks

ABA Insurance Services announced this week that $2,000,000 in dividends will be distributed to insured banks. (Press release can be read here.)   … [Read more...]

Bankers Professional Liability Notary Exclusion

There are exclusions in all insurance policies. Some are there to prevent/dissuade stupidity. The “Notary Exclusion” is one such. Almost all bankers professional liability policies have an exclusion for notary services: "based upon, arising from, or in consequence of the notarization of any signature without the physical appearance at the … [Read more...]

Debit Card Insurance Coverage Tips

Almost all Fraud-Bonds exclude a loss where the loss involves the use of a debit card. Coverage can be added back for an additional premium. Some insurers offer a separate, stand-alone policy. Debit card coverage provides for losses resulting directly from the fraudulent use of a debit card to obtain cash or pay for products or services by … [Read more...]

One Word Change Can Be The Difference In Covered/NotCovered

Why does a bank need my help with insurance? From one insurer's employee dishonesty coverage...   I request the insurer change one word in the policy... One word. “And” is changed to “Or.” In the coverage as issued for most banks, the bank must suffer a loss AND there must be an improper benefit. Bank manager moves … [Read more...]

Pregnancy Discrimination Act

The Pregnancy Discrimination Act was signed into law forty years ago. Legally and ethically your employees are due reasonable accommodations that allow them to work through the term of their pregnancy.  The Act also has been interpreted to include providing space and time for new mothers to pump breast milk at work. Here is some info on the Act … [Read more...]

Fracas Over Insurance on $2.4m Bank Breach – My Take

In the last several weeks I heard from many of you about a Virginia bank breach and the response from their insurer, ABA/Everest. The concerns are real. Let's see if we can add some light to the heat. Here is the original post. I have done some research. I have looked at policy forms by ABA/Everest and other insurers. I have talked with a few … [Read more...]

Foundation Requires Separate Insured Listing

My title refers to a charitable foundation set up by your bank to manage charitable gifts. If you have a separate entity (perhaps a non-profit) you will need to list the entity separately on your insurance policies, including your D&O. Even if your policy includes language that automatically picks up coverage for subsidiaries, you should … [Read more...]

Not A Big Deal, Until It Is… Valuable Papers

After a fire standard property insurance will pay for the value of the paper in your file cabinets...  So, for every file cabinet you have your insurer will buy you two boxes of copy paper. Cool! Until you realize you need the information that was on those pieces of paper. That is what is called Valuable Papers. Valuable papers insurance … [Read more...]