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...]
Notarizing Without Being Face-2-Face
July 1, 2021
I got this notice from the State of Maine recently... In short, emergency measures in Maine allow notaries to notarize without in-person proof of identity. That is all well and good. However, if you do that and there is a lawsuit because the person was not who they say they are do not expect your banker's professional liability insurance to … [Read more...]
Notary Service By Zoom
September 18, 2020
In a recent newsletter, I mentioned the exclusion on many bankers professional liability insurance policies for claims where a signature was notarized without the customer appearing in front of the notary. Here is one insurer's exclusion: "The Insurer shall not be liable to make any payment for Loss in connection with any claim arising out of … [Read more...]
Bank Underwriters Underwrite for COVID-19
April 15, 2020
I'm in the final stages of a renewal of a $1b bank in the Northeast. The current limit on lender liability and bankers professional liability is low, I think. I asked the agent to get the underwriter to quote higher limits. Travelers quoted the new limit but requested a COVID-19 supplemental application before they would make the … [Read more...]
Banking for Marijuana / Cannabis Related Businesses
August 8, 2019
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
June 22, 2019
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
January 28, 2019
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
January 25, 2019
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
January 15, 2019
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
December 30, 2018
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...]
