I got word yesterday that AmTrust is now offering a stand-alone Civil Money Penalty (CMP) insurance policy for banks.
-Coverage is applied for by the individual director or officer.
-Coverage is paid for by the director or officer.
-Bank is referenced on the policy but only to define the activities covered for the individual. The bank is not a part of the insurance.
-Coverage is for penalties and fines only. No defense cost coverage.
-Premiums start at $500 for $100,000 of coverage with a $1,000 deductible.
Talk with your agent about getting more info. Your bank does not have to be insured by AmTrust – though they are going to ask for the chance to quote.
I’m pleased to see a standard lines bank insurer offer this coverage (though it is on excess/surplus lines paper). More insurers will follow suit. I’d rather the premium was lower. I’d say the cost to administer separate policies is the biggest impediment to lower premiums.
