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 for the download.   … [Read more...]

Protect REO Property From Pipes Freezing

Your foreclosed / REO properties are probably insured on a property insurance policy. There is almost always a clause in those insurance policies that excludes coverage for damage from frozen pipes unless you maintained heat or drained the plumbing systems. Your maintenance team should either drain and winterize plumbing systems or regularly … [Read more...]

ABA Announces $2.5 Million Insurance Distribution to Qualified Members

From the ABA Banking Journal... American Bankers Mutual Insurance Ltd.—the reinsurer for the American Bankers Association’s endorsed insurance program—will distribute $2.5 million to be shared by qualified member banks insured through ABA Insurance Services, the association announced today. Read the Full Press Release. … [Read more...]

Employee Robs Customer – Is There Coverage?

Sometimes I hear of a news story that involves financial institutions where I have to scratch my head to answer my own bank insurance coverage question. That just happened when I read THIS story about a "bank" employee who robbed a customer who had made a large cash withdrawal.  (The article says a bank. It was a credit union he worked … [Read more...]

Bank Insurance Market Update

In July I posted about changes taking place in renewal insurance premiums. That was not specific to banks and it centered around property and auto insurance. With a few more months behind us, I can say that premiums are definitely going up for bank management liability and fraud-bond insurance. Until August I was seeing insurers increase … [Read more...]

Holiday-Party Booze Insurance

A longtime client emailed asking about serving booze at their bank's Christmas party. Someone suggested the bank buy host-liquor liability insurance. Here is my reply: Good to hear from you. This is exactly why I'm on the team! Short answer: Your general liability coverage in the Travelers package insurance policy includes coverage for "host … [Read more...]

Supreme Court Won’t Hear Domino’s Pizza Accessibility Case

I have written here several times of bank and credit union clients threatened with lawsuits over the accessibility of websites for customers with disabilities.  Yesterday the Supreme Court announced it will not hear a case with similar issues. Go Here for Info Your website must meet ADA standards for accessibility. Talk to your web designer. … [Read more...]

FinSecure pulls Back from Insuring Medium and Small Credit Unions

I have heard rumors that the insurer Berkley FinSecure is pulling back from insuring credit unions under $750m in assets. I'm told that different regions may be handling this track differently but credit unions in at least some parts of the Northeast are being non-renewed. The word I am getting is that credit unions are not being canceled. … [Read more...]