Beware of Coinsurance

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...]

Remember the Pollution Exclusion

Remember the Pollution Exclusion Over the past twenty years, the insurance industry has been hammered by the courts on pollution claims. Now, most standard insurance policies have pollution exclusions so broad that the industry calls them “absolute pollution exclusions.” Liability arising out of pollution is excluded by most general liability … [Read more...]

Bank Workers’ Compensation Code Change

Most states have moved to the new workers' compensation classification for banks. Unfortunately, not all insurance companies seem to be using the code.  Pull out your workers' compensation policy.  It should show all your payroll in a single code.  For most states, that will be "Code 8855 Banks, All employees." If your workers' compensation … [Read more...]

Employee Volunteer Work Causes Coverage Question

A question from a bank client about employees volunteering. I hope you are well.  I have an interesting question for you. If an employee is off under our volunteer paid time off policy and happens to get injured, what is the Bank’s liability (if any) and what insurance would potentially pay out? This did not happen, we are just curious as to how … [Read more...]

ABA Adds Standard Lines Insurance Offering

I’m a bit behind on my reading. I’ve had this in my reading pile for a few weeks now... The American Bankers Association's insurance arm is expanding to include property, general liability, and other standard lines of insurance coverage. Here is their announcement. I’m in full support of a robust marketplace. The more players the … [Read more...]

Overview of Bank Insurance – The Standard Lines – In 3 Minutes

I'm building my resources for bankers who buy insurance for their banks. Here is the video on the standard lines of insurance. I talk about property insurance, liability, workers' compensation, auto, and umbrella liability coverage. Tell me what you think. Suggest other topics. … [Read more...]

Overview of Bank Insurance in Three Minutes

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Teleseminar – Insurance For Banking Cyber World

Insurance For Banking Cyber World Join us for a fast-paced, information-packed forty-five minutes of unbiased insight into bank insurance coverage issues. -Cyber Liability -Data Breach Mitigation -Cyber Fraud -Computer Equipment Coverage -Cyber Insurance Markets -Insurance Strategies No sales pitch here. Valuable information, … [Read more...]

Core Processor Insurance Gap For Banks

Question from a client: "Our COO has asked if we had insurance coverage should our core processor not be able to perform. Our insurance agent responded…  “Dan, You would have coverage in the event that the processor were damaged due to a covered peril such as fire, lightning, smoke damage, etc. No coverage would apply if the processor simply … [Read more...]

Insurance vs Uninsurance

Here are some of the calls I have gotten over the past month... - A TX bank with the same insurance agent for fifteen years discovered that they had no lender liability insurance.  Potential loss: $300,000. - An MO bank found that the only coverage they have for a sex discrimination lawsuit is for defense costs.  If they lose the lawsuit there … [Read more...]