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...]

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...]

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...]

Bank Insurance Mistake – Shared Directors and Officers Limits

Do lender liability or employment practices liability claims reduce your coverage for future Directors’ and Officers’ claims? Many management liability policies have an aggregate limit that is equal to the limit of coverage for directors’ and officers’ claims – this has the effect of reducing coverage for future claims. For example, if you have … [Read more...]

How Much Extra Expense Coverage Does A Bank Need?

Extra expense coverage pays the increased cost of getting your bank back to serving customers after a fire, windstorm, or other insured calamity that damages your building. It will pay to relocate employees, rent temporary quarters, and rent temporary bank modules. The challenge in extra expense coverage is setting the amount of … [Read more...]

Stop Tracking Customer Insurance – At Least HELOCs and 2nds

Is your bank still tracking customer insurance coverage on your mortgages? Consider buying an insurance policy that protects your bank while eliminating the need to track coverage.  So-called, Blanket Insurance, is available for all your mortgages.  You transfer the risk of "no-insurance" to the insurance company. The best place to start is … [Read more...]

How Much Insurance Should Your Bank Buy

The eleventh edition of my recommended minimum limits of insurance for banks is available now for download. Several changes in approach this time. New limits for bankers to consider as well as a different approach to publicly traded banks. Go to www.HowMuchBankInsurance.com for your copy. Directors and Officers Insurance Lender Liability … [Read more...]

Debit Card / ATM Cashout Losses and Attacks

Here are some new questions being asked by insurance company underwriters when I ask for higher debit card limits.  Not bad questions for every bank to ask themselves. These questions are mainly driven by recent FBI guidance regarding ATM Cashout schemes. For more info about ATM Cashouts: … [Read more...]