ABA Announces $2.5 Million Insurance Distribution to Qualified Members

From the ABA Banking Journal... American Bankers Mutual Insurance Ltd.—the reinsurer for the American Bankers Association’s endorsed insurance program—will distribute $2.5 million to be shared by qualified member banks insured through ABA Insurance Services, the association announced today. Read the Full Press Release. … [Read more...]

Bank Insurance Market Update

In July I posted about changes taking place in renewal insurance premiums. That was not specific to banks and it centered around property and auto insurance. With a few more months behind us, I can say that premiums are definitely going up for bank management liability and fraud-bond insurance. Until August I was seeing insurers increase … [Read more...]

Supreme Court Won’t Hear Domino’s Pizza Accessibility Case

I have written here several times of bank and credit union clients threatened with lawsuits over the accessibility of websites for customers with disabilities.  Yesterday the Supreme Court announced it will not hear a case with similar issues. Go Here for Info Your website must meet ADA standards for accessibility. Talk to your web designer. … [Read more...]

Dishonest Acts and Employee Dishonesty Coverage

Some version of this question comes up with some regularity. "We just learned of something an employee did in the past. Does this affect our bank's insurance coverage?" I ask the caller what the employee did. The replies I have heard recently are: -Cheated on income taxes. -Got caught shoplifting. -Forged a signature with intent to … [Read more...]

Semantical Bank Insurance Silliness

For the 238,000th time, I have been asked why insurance is so unnecessarily complicated... I have no good response. In 40 years I never have. Probably will not 40 years from now. Regulators and some insurers call two different policies "Mortgage Errors and Ommissions." The first is coverage for a borrower who fails to buy insurance after you … [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...]

Fracas Over Insurance on $2.4m Bank Breach – My Take

In the last several weeks I heard from many of you about a Virginia bank breach and the response from their insurer, ABA/Everest. The concerns are real. Let's see if we can add some light to the heat. Here is the original post. I have done some research. I have looked at policy forms by ABA/Everest and other insurers. I have talked with a few … [Read more...]

Chubb Insurance Pulls Back From Insuring Banks

I have heard now from two sources that Chubb Insurance is pulling back from providing community banks with management liability, directors and officers, financial institution bond, and related insurance coverages. The reports are that the insurer is not canceling policies but pricing renewals so to be uncompetitive. Also, no new banks are being … [Read more...]

Common Bank Insurance Mistakes – Missing Entities

In about half the insurance reviews I do for banks, I find entities missing from the coverages. Some insurance policies require that entities be listed on the policy for coverage to apply. Some banks have real estate operations or mortgage operations that are separated legal entities. Many community banks manage charitable foundations. These all … [Read more...]

How Much Insurance Should Your Bank Buy

The tenth edition of my recommended minimum limits of insurance for banks is now available. Go Here To Download Your Copy. The most common questions bankers ask me is, "Do we have enough insurance?" Another version is, "How much insurance should our bank buy?" The question is largely unanswerable as we have no idea of the size of … [Read more...]