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...]

SR 19-12 Federal Reserve and D&O Insurance

As an insurance consultant to over five hundred banks around the US, I have fielded a fair number of questions and requests regarding the release of SR 19-12 in July. In this article, I will attempt to provide some clarity on my position and how your bank can understand the protections offered by your directors' and officers' insurance … [Read more...]

Dishonest Acts and Employee Dishonesty Coverage

Some version of this question comes up with some regularity. "We just learned of something an employee did in the past. Does this affect our bank's insurance coverage?" I ask the caller what the employee did. The replies I have heard recently are: -Cheated on income taxes. -Got caught shoplifting. -Forged a signature with intent to … [Read more...]

Banking for Marijuana / Cannabis Related Businesses

I'm spending some time thinking about the insurance issues raised by banks working with customers in marijuana-related businesses. I have polled several insurers and have been talking with my clients about the issues. I have also been studying insurance policy exclusions and restrictions, looking for trouble. I have found some. If your bank … [Read more...]