The Bank Insurance Route-Map

As a kid my dad would take me into Boston.  We always rode the subway.  Everyone in New England knows the Boston subway as “The T.”

Here’s a map of The T – similar to what is posted in every subway station in “The Hub.”

We rode the Blue-Line when I was in elementary school.  I went to college off of the Green-Line.  I dated a girl who lived on the Red-Line.

I grew up with this map.  It helped me find my way around “the big city.”

I have no idea who came up with this as a representation of the subway lines.  Similar maps exist in every city with busses and subways.

Of course, it is only partially accurate.  The subway lines are not straight, and the stops are not equidistant from each other.  Some stops are not even shown on the map.

It is tremendously effective though – and has been in use for well over 100 years in some form.  You look at it, and you know that if you want to go to the south-shore of Boston that you get on the Red-Line.

I wanted to come up with a similar simple way to explain bank insurance.  Here is the latest version of my own “Route-Map.”

Download a PDF copy of the bank insurance route-map here. (pdf)

Four parts to bank insurance…
Financial Institution Fraud-Bond – Think fraud and deceit.  This covers losses to bank assets by the dishonest acts of employees and outsiders. Embezzlement, funds transfer fraud, robbery, counterfeiting, computer hackers.  If the intent involves fraud, look to the bond.
Management Liability – Insurance against lawsuits because of decisions the bank, the employees, or the directors and officers have made.  Someone is suing the bank for errors and omissions, a data breach, a decline in value, a failure to act appropriately.  Lawyers are involved?  Think executive risk.
Standard Lines – Coverage for the vicissitudes of business life. These coverages are almost identical to what any business would buy: property, general liability, automobile, workers’ compensation, umbrella liability.
Lender Asset Protection Lines – Insurance against mistakes and errors made in administering mortgages and loans.  Property insurance on properties you take over in foreclosure, forced placed property insurance, mortgage impairment, and vendor single interest.

Comments welcome.