Kiss Your Three Year Policy Goodbye

For many years banks under $2B in assets (and some larger) have been able to get three-year renewals on their bond and management liability. A three-year policy saves everyone time and angst. Well, all good things come to an end. In the past week I have heard of two insurers who are not renewing policies on a three-year basis. I expect other … [Read more...]

Twenty Years Ago Today

On May 18, 2000 my first consulting client handed me my first check.  Pepperell Trust in Biddeford Maine needed help with their insurance renewal. The bank is gone, purchased by Bangor Savings Bank, but I am still going strong. What a ride it has been.  Here's to the next twenty years! … [Read more...]

Pandemic Workers’ Compensation Payroll – Nonworking Workers

Insurers and rating bureaus are recognizing that some employers are paying workers to not work in the pandemic. (Yes, the world is upside down.) As they are not working, they can not get injured. With no chance of loss, it makes sense to exclude the non-working-workers' payroll from the calculation of workers' compensation premiums. It looks … [Read more...]

The Pandemic & Insurance – My Thoughts As of Now

We are all trying to figure this thing out. First, we are going to get through this. We always do. The virus has hit my family hard. I'm not convinced, as a nation, we are halfway through this. Thousands and thousands more will be sick and die. Still, I know that sometime in the next six to twelve months, we will see the end. Two years from … [Read more...]

Bank Underwriters Underwrite for COVID-19

I'm in the final stages of a renewal of a $1b bank in the Northeast.  The current limit on lender liability and bankers professional liability is low, I think.  I asked the agent to get the underwriter to quote higher limits.  Travelers quoted the new limit but requested a COVID-19 supplemental application before they would make the … [Read more...]

Droning On About Drone Insurance

Today I saw my first bank with a drone insurance policy.  I have been waiting for this to happen. If your financial institution owns a drone or an employee is using their personal drone in bank business you probably need to make an adjustment to your liability insurance program. Most general liability and umbrella liability policies include … [Read more...]

Customer Slip and Fall Prevention

By far the most common general liability claim for financial institutions is the slip, trip, and fall event. A customer slips on the ice in your parking lot. A mortgage attorney falls on a wet entryway floor. A pedestrian trips on the sidewalk in front of your bank. Here are a few ideas on prevention... -Don't be stingy with the … [Read more...]

Open Perils, All Risk, Special Perils, Named Perils

Question from a client: Scott, I hate to bother you with this.   I know this isn’t part of our current engagement for the insurance renewal, but do you have any opinion on this?  A prior agent had recommended that for commercial loan insurance requirements – we should require our borrowers to have either “Special Form Coverage” or an “Open … [Read more...]

Age Discrimination Growing Issue In Bank Lawsuits

I think I am noticing a trend.  This is certainly not scientific.  It seems like I am hearing more and more about bank employees bringing an action against their employers for age discrimination. Then I see this article by AARP. What is your team doing to prevent age discrimination? As important, what is your team doing to prevent the … [Read more...]

Recommended Limits of Insurance for Bankers

The 2020 edition of my recommended minimum limits of insurance chart is available online. I give guidance on the most asked question I get from my bank clients: "How much insurance should our bank buy?" Go to www.HowMuchBankInsurance.com for the download.   … [Read more...]