Bank Insurance Mistake – Inadequate Extra Expense Coverage

Undoubtedly your property insurance covers the repair of a bank building damaged by fire or windstorm. How about the increased cost of operations for the six to eight months it takes to get you back into the building? How will you pay for the rental of a temporary banking location or the cost of bringing in a mobile banking center? How about the … [Read more...]

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 … [Read more...]

Bank Insurance Mistake – Coinsurance Penalties in Your Property Insurance Policies

Work with your insurance agent to eliminate any coinsurance clauses from your property insurance. Coinsurance is a penalty inside many policies that can hurt you at the time of a loss. It’s a penalty assessed when your insurance company thinks you are underinsured. Ask your agent if you have coinsurance in any of your property insurance … [Read more...]

The Asset No Insurance Can Protect

Your bank's reputation is an asset that no insurance can protect. Some insurers have come up with limited insurance coverage for some PR issues.  However, as many falsely-accused have said, "Where do I go to get my reputation back?" What's your bank's plan for negative press? How do you respond to a derogatory story or FaceBook post? How do … [Read more...]

Bank Insurance Mistake – Cyber Insurance – Inadequate Privacy Mitigation Coverage

Obviously, I want my bank clients to have cyber liability insurance. (Some banks still don’t have the coverage!) However, it’s the second part of the cyber policy that I'm most concerned with. If you have a data breach, you’ll have to notify your bank's customers. Expenses in mitigating a privacy event can reach $100 to $200 per breached name. … [Read more...]

Bank Insurance Mistake – Shared Directors and Officers Limits

Do lender liability or employment practices liability claims reduce your coverage for future Directors’ and Officers’ claims? Many management liability policies have an aggregate limit that is equal to the limit of coverage for directors’ and officers’ claims – this has the effect of reducing coverage for future claims. For example, if you have … [Read more...]

How Much Extra Expense Coverage Does A Bank Need?

Extra expense coverage pays the increased cost of getting your bank back to serving customers after a fire, windstorm, or other insured calamity that damages your building. It will pay to relocate employees, rent temporary quarters, and rent temporary bank modules. The challenge in extra expense coverage is setting the amount of … [Read more...]

Define Unbiased

From Merriam - Webster: un·bi·ased /ˌənˈbīəst/ adjective - showing no prejudice for or against something; impartial. "his assessment of the benefits and drawbacks was unbiased" synonyms: impartial, unprejudiced, nonpartisan, neutral, objective, outside, disinterested, without fear or favor, dispassionate, detached, unswayed, even-handed, … [Read more...]

Stop Tracking Customer Insurance – At Least HELOCs and 2nds

Is your bank still tracking customer insurance coverage on your mortgages? Consider buying an insurance policy that protects your bank while eliminating the need to track coverage.  So-called, Blanket Insurance, is available for all your mortgages.  You transfer the risk of "no-insurance" to the insurance company. The best place to start is … [Read more...]

How Much Insurance Should Your Bank Buy

The eleventh edition of my recommended minimum limits of insurance for banks is available now for download. Several changes in approach this time. New limits for bankers to consider as well as a different approach to publicly traded banks. Go to www.HowMuchBankInsurance.com for your copy. Directors and Officers Insurance Lender Liability … [Read more...]