Surprise! Insurance Agents Recommend Buying Insurance

I have had four conversations today with insurance agents.  In all cases the agents wanted my clients to buy more insurance.  More, more, more, more. There is never enough insurance purchased. There is never a reason to lower limits. There is never a premium savings worth increasing deductibles. No risk is too small to recommend the purchase of … [Read more...]

Semantical Bank Insurance Silliness

For the 238,000th time, I have been asked why insurance is so unnecessarily complicated... I have no good response. In 40 years I never have. Probably will not 40 years from now. Regulators and some insurers call two different policies "Mortgage Errors and Ommissions." The first is coverage for a borrower who fails to buy insurance after you … [Read more...]

Fraud-Bond – Money In Transit Coverage

Your bank’s fraud-bond includes protection for transportation of cash when the cash is in the possession of an armored car company or an employee.  You are not covered for contracted messengers, taxis or other delivery services when cash is lost, stolen or misplaced. Of course, your messenger service may offer coverage or agree to protect you. … [Read more...]

Pollution Insurance for Lenders

I recently learned more about Beazley Group's pollution liability and clean-up insurance coverages. Here are some highlights of this coverage: - The policy is in the name of the lender only - it protects the bank's interest in the property. - Coverage is provided on a single-loan basis only. Have a loan where you are concerned about … [Read more...]

Pollution Liability Insurance For Lenders

An almost universally uninsured exposure for most bankers is liability and cleanup costs for REO properties found to have pollutants. The specialty insurer Beazley announced that it has an insurance solution, "Site Lender Environmental Asset Protection." I have no details yet. I have reached out to the insurer. More when I know it. Their … [Read more...]

Employee Dishonesty/Fidelity Insurance – The Fraud Bond

The employee dishonesty section of the financial institution fraud-bond is often called “Coverage A,” as it was designated as such in the original “Form 24” bond used in the early part of the 1900s. Coverage is provided for dishonest or fraudulent acts committed by employees acting alone or in collusion with others—such as embezzlement. The … [Read more...]

A Reservoir of Bank Insurance Knowledge

Since 2000 I have made over 800 posts to this blog. In addition, there are hundreds of articles, podcasts, and videos available on my website. I know of no other bank insurance resource with this amount of information and advice. I'm particularly proud of my bank insurance book, now in its second edition, available on Amazon. While many like … [Read more...]

Builders’ Risk Insurance

The builders’ risk insurance policy covers buildings during construction, renovation, or repair. Insurance is provided on the structure and materials used in construction. In most cases, materials are covered while in transit, at temporary storage locations, and while stored at the job site. The following are some of the issues to consider. Who … [Read more...]

Debris Removal

After a fire or other insured damage to your building, there will likely be debris that needs to be removed. Coverage is usually limited to 25 percent of the loss. The amounts paid for debris removal do not increase the total limit of coverage for the whole claim. It is, therefore, possible that you can run out of coverage. To help, insurers … [Read more...]

Bank Breach – Debit Card – Update

In August I put out a post on my take of the VA bank $2.4m debit-card/hack event.  (See that post here.) Over the past three months, I have more information and have changed my thinking slightly. First, I have no more info on the actual event or the claim with ABA/Everest. As I said before, the bank is not a client and ABAIS is obviously not … [Read more...]