Intro to Fiduciary Liability Insurance

Fiduciary liability insurance is an important, though rarely used, coverage in your bank insurance program. Claims are infrequent. When they do happen, hang on to your hat. Fiduciary liability insurance protects the administrators of your employee benefit plan from lawsuits alleging a violation of ERISA. ERISA calls your administrators … [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...]

NonOwned Auto Liability Insurance

It isn't just the cars you own that expose your bank to auto liability. Every time an employee goes to a meeting or visits with a customer, you are exposed to a loss. A loan officer or branch manager going to a chamber of commerce meeting hits a school bus. I can guarantee the bank is getting sucked into a lawsuit. It's one of the reasons I like … [Read more...]

Excluded Property – Mail

Your bank's fraud-bond and property insurance probably exclude coverage for property mailed or shipped. Consider separate coverage for property, securities, and other property of value you mail or ship. … [Read more...]

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...]