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...]

Fiduciary Liability Coverage Misunderstandings

In your bank's management liability insurance program is (should be) coverage for errors made in the administration of YOUR employee benefit plan as described in the federal law, ERISA.  This coverage section is almost always called "Fiduciary Liability." The word "fiduciary" refers to your liability under ERISA, as an employer. This is not … [Read more...]

Bank Insurance Mistake – Cyber Insurance – Inadequate Privacy Mitigation Coverage

Obviously, I want my bank clients to have cyber liability insurance. (Some banks still don’t have the coverage!) However, it’s the second part of the cyber policy that I'm most concerned with. If you have a data breach, you’ll have to notify your bank's customers. Expenses in mitigating a privacy event can reach $100 to $200 per breached name. … [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 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...]

Bank Owned Insurance Agency

It is often best-practice for a bank that owns an insurance agency to buy an insurance agent's errors and omissions insurance policy that is separate from the bank's professional liability insurance. Sure, your bank management liability can almost always be expanded to include coverage. However, I like to separate out the coverage to segregate … [Read more...]

Charitable Foundations and Your Insurance Policies

Your organization may have set up a charitable foundation. That entity should be listed on all your insurance policies. By design, a foundation is not a subsidiary by the standard definition used by most insurance policies. While you may have common board members, your board is not the board of the foundation. Your bank does not "control" the … [Read more...]

Bankers Professional Liability Notary Exclusion

There are exclusions in all insurance policies. Some are there to prevent/dissuade stupidity. The “Notary Exclusion” is one such. Almost all bankers professional liability policies have an exclusion for notary services: "based upon, arising from, or in consequence of the notarization of any signature without the physical appearance at the … [Read more...]

Banks Need To Review Websites for ADA Compliance

This will be my third post on this topic... Here is the last one from December of 2016 which references my post of January 2016. Well, boys and girls, it is still happening.  A law firm hires a disability advocate to visit your website. They find it to be non-compliant with the Americans with Disabilities Act.  You get a letter threatening … [Read more...]

Corporate Indemnification Protects Officers and Directors

Your directors and officers are absolutely, positively, undeniably, indubitably, unequivocally, irrefutably dependent upon the quality and breadth of the provision of your bylaws that deals with indemnification. When was the last time your corporate attorney reviewed that provision? If more than three years talk to your attorney soon. … [Read more...]