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...]
Indemnification & Hold Harmless Agreements
June 16, 2021
I like hold-harmless agreements. Basically, they say I will not sue you and you will not sue me. I don't like indemnification agreements. Basically, they say if you get sued I'm supposed to defend you and pay any award against you. In the absence of an indemnification agreement, you pay your liabilities and I pay mine. You buy insurance (or … [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 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...]
To Keep or Not to Keep, That is the Question! Insurance Policy Retention
April 21, 2018
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...]
Banks – Professional Liability Notary Services Exclusion
July 1, 2015
Bankers, a reminder about most insurance company's professional liability coverage... Most insurers exclude lawsuits that come out of notarized signature when the person signing the document did not appear personally before the notary. You'd think it was a given that notaries would have to have the guy standing in front of them in order to … [Read more...]
Civil Money Penalty Insurance
August 31, 2014
Since the FDIC came out with their October 2013 letter clarifying/trashing the use of insurance to protect bank directors and officers from civil money penalties there has been a great deal of heat generated by discussion. Not much light - lots of heat. About two years ago I saw the whole thing coming and started telling my bank clients to … [Read more...]
The Difference Between Directors and Officers and Professional Liability
July 17, 2014
I was asked recently the difference between Directors' and Officers' Insurance (D&O) and Professional Liability Insurance (malpractice, errors and omissions). D&O covers management decisions. Professional liability covers malpractice in the business you are in. A doctor cutting out the wrong kidney is professional liability. The … [Read more...]
