How Much Insurance Should Your Bank Buy

The tenth edition of my recommended minimum limits of insurance for banks is now available. Go Here To Download Your Copy. The most common questions bankers ask me is, "Do we have enough insurance?" Another version is, "How much insurance should our bank buy?" The question is largely unanswerable as we have no idea of the size of … [Read more...]

Fraud-Bond: Fraudulent Loan Collateral

There is no coverage in a financial institution fraud-bond for a fraud loss where the fraud is in the determination of the value of the collateral. You take a loan secured by inventory, and it turns out there is no inventory. No coverage. Example: ABC Bank and Trust loans money to an electrical parts supplier. They take inventory in a warehouse as … [Read more...]

Playing Well With Others – My Relationship With Insurance Agents

Bankers are sometimes concerned with how their insurance agent will feel about my involvement in an insurance review. - Will our agent be offended that we brought you in? - Will you damage our relationship with our insurance agent? Well over 80% of the community banks I work with have a close relationship with their insurance agent. I am … [Read more...]

Mortgage Impairment

Ask three questions when talking with your insurance agent about mortgage impairment insurance coverage: 1)Do we track customer renewals, cancellations, or neither? 2)Does this cover mortgage impairment by flood when flood insurance is required peril? 3)Does this cover mortgage impairment by flood when flood insurance is not a required … [Read more...]

Cyber Insurance For Bankers Webinar Video

Here is the replay of my recent webinar on cyber insurance for bankers. … [Read more...]

ABA Insurance Services – Property, Liability, Auto, Workers’ Compensation, Umbrella Insurance For Banks

A bank's agent just sent me a quote for Property, Liability, Auto, Workers' Compensation, Umbrella, REO Property... I am very impressed.  The price is very good compared to other standard lines insurers and the coverages are great. Nice work ABA. I'll be sending more banks your way on these lines of insurance. Info Here … [Read more...]

What You Need To Know About Your Bank’s D&O Policy

Here is the link to the video of yesterday's session. I covered the banker's D&O policy, indemnification, the bank insurance marketplace, and took a few questions. My next Webinar is on 9/21, Bank Insurance 101.  To join that session register here. … [Read more...]

Damage to Employee Vehicles While Driving on Bank Business

What are the employees’ expectations for damage caused in accidents while driving their personal vehicles on bank business? Will you pay for damage to their vehicle, or should the employee rely upon his own insurance? Will you pay his deductible? Make your plan clear in your employee handbook to avoid misunderstandings. Send an annual reminder … [Read more...]

Learn to Read Your Bank’s Insurance Policies

The mere thought of reading an insurance policy can make your head hurt. Understanding your bank's insurance, however, requires that you review the contracts. Here are some hints to make it less painful. Understand the Purpose of the Policy – An auto policy is designed to cover vehicular accidents. General liability insurance is purchased to … [Read more...]

Bank Fraud-Bond Misunderstandings… Servicing Contractors

In about half the small bank insurance programs I review I find that the fraud-bond has had coverage broadened to cover "Servicing Contractors." Most banks don’t need this coverage because they don’t use "Servicing Contractors" as defined in the bond. This from the ABA's coverage description: The Servicing Contractors Rider extends the … [Read more...]