Smoke Alarms Expire

Our new Maine house needed some electrical work.  The electrician let us know that the smoke alarms had expired.  I thought he was joking. I flashed be being a new Boy Scout and being asked by an older Scout to run to the next camp to get him a "tent-shifter." Actually, smoke alarms do expire.  The recommendation is to replace them every ten … [Read more...]

Damage to Personal Vehicles on Bank Business

I get more web-traffic on this topic as any other thing I have posted in the last 20 years.  Several clients have asked about it recently. Jane has been an employee of your bank for many years. She is a good and faithful employee. On her way back from a meeting, a truck kicks up a stone that breaks Jane's windshield. Jane is now in your office … [Read more...]

Nobody Ever Got Fired For Buying Too Much Insurance

I'm finally finished with my July renewals.  I am beaten and bloody but we, in general, came out on top.  Ugg! I had several instances where bankers were buying more insurance than I thought necessary based on the size, structure, and financial strength of the bank. I almost always get pushback on a recommendation to reduce coverage (or to drop … [Read more...]

Workers’ Compensation – One Code Does It ALL For Banks

Several times in the past month I have looked at bank workers' compensation policies and found the bank employee classification (8855 in most states) and another code for building maintenance. No. Said another way, Nooooooooo! If your workers' compensation policy shows more than the bank code (again, code 8855 in most states), ask your … [Read more...]

Kiss Your Three Year Policy Goodbye

For many years banks under $2B in assets (and some larger) have been able to get three-year renewals on their bond and management liability. A three-year policy saves everyone time and angst. Well, all good things come to an end. In the past week I have heard of two insurers who are not renewing policies on a three-year basis. I expect other … [Read more...]

Twenty Years Ago Today

On May 18, 2000 my first consulting client handed me my first check.  Pepperell Trust in Biddeford Maine needed help with their insurance renewal. The bank is gone, purchased by Bangor Savings Bank, but I am still going strong. What a ride it has been.  Here's to the next twenty years! … [Read more...]

Pandemic Workers’ Compensation Payroll – Nonworking Workers

Insurers and rating bureaus are recognizing that some employers are paying workers to not work in the pandemic. (Yes, the world is upside down.) As they are not working, they can not get injured. With no chance of loss, it makes sense to exclude the non-working-workers' payroll from the calculation of workers' compensation premiums. It looks … [Read more...]

The Pandemic & Insurance – My Thoughts As of Now

We are all trying to figure this thing out. First, we are going to get through this. We always do. The virus has hit my family hard. I'm not convinced, as a nation, we are halfway through this. Thousands and thousands more will be sick and die. Still, I know that sometime in the next six to twelve months, we will see the end. Two years from … [Read more...]

Bank Underwriters Underwrite for COVID-19

I'm in the final stages of a renewal of a $1b bank in the Northeast.  The current limit on lender liability and bankers professional liability is low, I think.  I asked the agent to get the underwriter to quote higher limits.  Travelers quoted the new limit but requested a COVID-19 supplemental application before they would make the … [Read more...]

Droning On About Drone Insurance

Today I saw my first bank with a drone insurance policy.  I have been waiting for this to happen. If your financial institution owns a drone or an employee is using their personal drone in bank business you probably need to make an adjustment to your liability insurance program. Most general liability and umbrella liability policies include … [Read more...]