Insurance vs Uninsurance

Here are some of the calls I have gotten over the past month…

– A TX bank with the same insurance agent for fifteen years discovered that they had no lender liability insurance.  Potential loss: $300,000.
– An MO bank found that the only coverage they have for a sex discrimination lawsuit is for defense costs.  If they lose the lawsuit there is no coverage for the award against the bank.  Potential loss: $150,000.
– A KY bank found that they misunderstood their financial institutions fraud-fraud bond leaving a gap of $250,000 from what they thought their insurance would pay and what their insurance will pay.
– An MS bank discovered that a fire at their main office would result in their being co-insured (meaning uninsured) for $400,000.
– A CT bank had some wind damage and learned that they had $35,000 of extra expense coverage.  Potential loss: $400,000.
Five conversations $1,500,000 in uninsured losses.
On average I find well over $500,000 in uninsured exposures when I review the insurance a bank has.
There is a cost to doing nothing.  Not reviewing your insurance is a decision.  It is a decision that could have consequences well beyond an uninsured loss.