I get more web-traffic on this topic as any other thing I have posted in the last 20 years. Several clients have asked about it recently. Jane has been an employee of your bank for many years. She is a good and faithful employee. On her way back from a meeting, a truck kicks up a stone that breaks Jane's windshield. Jane is now in your office … [Read more...]
Workers’ Compensation – One Code Does It ALL For Banks
June 9, 2020
Several times in the past month I have looked at bank workers' compensation policies and found the bank employee classification (8855 in most states) and another code for building maintenance. No. Said another way, Nooooooooo! If your workers' compensation policy shows more than the bank code (again, code 8855 in most states), ask your … [Read more...]
Builders’ Risk Insurance
February 6, 2019
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...]
Debris Removal
February 5, 2019
After a fire or other insured damage to your building, there will likely be debris that needs to be removed. Coverage is usually limited to 25 percent of the loss. The amounts paid for debris removal do not increase the total limit of coverage for the whole claim. It is, therefore, possible that you can run out of coverage. To help, insurers … [Read more...]
Bank Insurance Mistake – Inadequate Extra Expense Coverage
February 1, 2019
Undoubtedly your property insurance covers the repair of a bank building damaged by fire or windstorm. How about the increased cost of operations for the six to eight months it takes to get you back into the building? How will you pay for the rental of a temporary banking location or the cost of bringing in a mobile banking center? How about the … [Read more...]
Bank Insurance Mistake – Inadequate Umbrella Liability Limits
January 31, 2019
Umbrella liability insurance provides protection above and beyond the coverage included in your general liability, auto liability, and employer’s liability insurance. It’s an inexpensive way to increase your level of protection against someone suing you. Premiums can be as low as $750 per $1,000,000 of coverage. My minimum recommended limit for … [Read more...]
Bank Insurance Mistake – Coinsurance Penalties in Your Property Insurance Policies
January 30, 2019
Work with your insurance agent to eliminate any coinsurance clauses from your property insurance. Coinsurance is a penalty inside many policies that can hurt you at the time of a loss. It’s a penalty assessed when your insurance company thinks you are underinsured. Ask your agent if you have coinsurance in any of your property insurance … [Read more...]
How Much Extra Expense Coverage Does A Bank Need?
January 24, 2019
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...]
Not A Big Deal, Until It Is… Valuable Papers
July 16, 2018
After a fire standard property insurance will pay for the value of the paper in your file cabinets... So, for every file cabinet you have your insurer will buy you two boxes of copy paper. Cool! Until you realize you need the information that was on those pieces of paper. That is what is called Valuable Papers. Valuable papers insurance … [Read more...]
Beware of Coinsurance
March 25, 2018
Coinsurance is a penalty provision found in most property insurance policies for underinsurance. It never helps you. It can only hurt at the time of a loss. Example – Underinsured Building With Coinsurance Property value: $1 million 80 percent coinsurance clause (requires the purchase of $800K of insurance) Amount of insurance: $750K Amount of … [Read more...]
