Bank Insurance Mistake – Inadequate Umbrella Liability Limits

Umbrella liability insurance provides protection above and beyond the coverage included in your general liability, auto liability, and employer’s liability insurance.

It’s an inexpensive way to increase your level of protection against someone suing you. Premiums can be as low as $750 per $1,000,000 of coverage. My minimum recommended limit for any bank is $5,000,000. If your bank has over $300 million in assets, consider $8,000,000.

The coverage is cheap, and the exposure can be huge. I have long said that the most likely cause of a multi-million dollar lawsuit in a bank is an auto accident, probably an employee of the bank driving his or her personal vehicle. Consider the potential lawsuit against your bank if a VP driving her personal car hits a school bus.