Common Bank Insurance Mistakes – Missing Entities

In about half the insurance reviews I do for banks, I find entities missing from the coverages. Some insurance policies require that entities be listed on the policy for coverage to apply. Some banks have real estate operations or mortgage operations that are separated legal entities. Many community banks manage charitable foundations. These all … [Read more...]

How Much Insurance Should Your Bank Buy

The tenth edition of my recommended minimum limits of insurance for banks is now available. Go Here To Download Your Copy. The most common questions bankers ask me is, "Do we have enough insurance?" Another version is, "How much insurance should our bank buy?" The question is largely unanswerable as we have no idea of the size of … [Read more...]

Fraud-Bond: Fraudulent Loan Collateral

There is no coverage in a financial institution fraud-bond for a fraud loss where the fraud is in the determination of the value of the collateral. You take a loan secured by inventory, and it turns out there is no inventory. No coverage. Example: ABC Bank and Trust loans money to an electrical parts supplier. They take inventory in a warehouse as … [Read more...]

Playing Well With Others – My Relationship With Insurance Agents

Bankers are sometimes concerned with how their insurance agent will feel about my involvement in an insurance review. - Will our agent be offended that we brought you in? - Will you damage our relationship with our insurance agent? Well over 80% of the community banks I work with have a close relationship with their insurance agent. I am … [Read more...]

Mortgage Impairment

Ask three questions when talking with your insurance agent about mortgage impairment insurance coverage: 1) Do we track customer renewals, cancellations, or neither? 2) Does this cover mortgage impairment by flood when flood insurance is required peril? 3) Does this cover mortgage impairment by flood when flood insurance is not a required … [Read more...]

Informative Bank Director’s Guidebook

Charles Thayer is a well-experienced bank advisor and board member.  His latest book is an excellent overview of obligations and advice for directors. Filled with "Do's and Don'ts," there is solid and actionable information here. He also brings out the importance of strong directors' indemnification language as protection for directors in … [Read more...]

Cyber Insurance For Bankers Webinar Video

Here is the replay of my recent webinar on cyber insurance for bankers. … [Read more...]

ABA Insurance Services – Property, Liability, Auto, Workers’ Compensation, Umbrella Insurance For Banks

A bank's agent just sent me a quote for Property, Liability, Auto, Workers' Compensation, Umbrella, REO Property... I am very impressed.  The price is very good compared to other standard lines insurers and the coverages are great. Nice work ABA. I'll be sending more banks your way on these lines of insurance. Info Here … [Read more...]

Workers’ Compensation and Employers Liability

A client asked about the difference in workers' compensation and employers' liability.   Workers' Compensation is the state-mandated health insurance, disability insurance, and life insurance coverage employers buy to cover employees in employment-related injuries and sickness.   Employers' liability is for lawsuits arising out of the … [Read more...]

What You Need To Know About Your Bank’s D&O Policy

Here is the link to the video of yesterday's session. I covered the banker's D&O policy, indemnification, the bank insurance marketplace, and took a few questions. My next Webinar is on 9/21, Bank Insurance 101.  To join that session register here. … [Read more...]