To Keep or Not to Keep, That is the Question! Insurance Policy Retention

A bank client wrote me recently and asked how long he should keep insurance invoices, claims info and policies.  Here is my advice: Hi Brad, I'd keep invoices and claims records as long as you keep other expense records.  Claims that involve litigation should be kept as long as your attorney tells you to keep the info. The standard … [Read more...]

Learn to Read Your Bank’s Insurance Policies

The mere thought of reading an insurance policy can make your head hurt. Understanding your bank's insurance, however, requires that you review the contracts. Here are some hints to make it less painful. Understand the Purpose of the Policy – An auto policy is designed to cover vehicular accidents. General liability insurance is purchased to … [Read more...]

Insurance Mistakes – Improper Named Insured

Your insurance requires that names be listed on the declarations page of the policy.  Those entities or people listed are insured by the policy. Some policies extend protection to subsidiaries and owners. Notice I said, "some." Review the named insureds on your policies. Be sure all entities are listed or that the policy includes language adding … [Read more...]

CEOs Signing Insurance Applications

A bank client is in the final stages of changing insurance companies. The insurer wants a signed application. The CEO looks over the app. He is busy and trusts his CFO. He signs the document and moves on. Six months later a claim comes up. The insurer turns the claim down because there is a pertinent question on the application that was answered … [Read more...]

Cruddy Proposals of Insurance

I am looking at a thirty-page proposal of insurance for a bank and I cannot figure out what the premium charges will be.  There is no summary, no comparison, no chart to help me figure out what is being charged. Agents, if you can not summarize the essence of your proposal on one page you have not presented your ideas well. … [Read more...]

One Agent is Enough and Preferable

I have clients who have more than one insurance agent.  There are many reasons this happens. It is almost always a bad idea. Multiple agents means that intersecting insurance coverages are handled by different people. All the moving parts of your insurance program and your business cause confusion when there are several cooks in the … [Read more...]

Horrible Phone Call

The other day I got a horrible phone call. One of my clients is in the middle of a messy claim on their home insurance policy. My work for this client has been on his company.  I had offered to review his personal insurance.  He never took me up on that offer.  Now he is having a problem. I never want to get a call like this … [Read more...]