Chubb Insurance Pulls Back From Insuring Banks

I have heard now from two sources that Chubb Insurance is pulling back from providing community banks with management liability, directors and officers, financial institution bond, and related insurance coverages. The reports are that the insurer is not canceling policies but pricing renewals so to be uncompetitive. Also, no new banks are being … [Read more...]

Bank Funds Transfer Fraud

More than a few bank clients have reported recent incidents involving Funds Transfer Fraud.  There are a wide variety of schemes out there - and they are getting more creative every day. Here is an interesting article by ABA on the issue. Advice for bankers... Coverage for these losses should be in your fraud-bond (AKA the bond). Test and test … [Read more...]

Chubb Better With Dishonest Employees

I've complained often about the financial institution bond exclusion for "dishonest employees."Here is the clause on a Chubb policy I am currently reviewing for a bank client:This Bond terminates as to any Employee: F. immediately on the ASSURED, or any of its directors, trustees or officers not acting in collusion with such Employee, learning of … [Read more...]

Bank Bond – In Transit Insurance

This one for my bank clients & friends...The bank bond purchased by most American banks includes coverage to loss of money (and other property) "in Transit."  The coverage is also called section C in many bonds.The protection is for money being (oh surprise) transported.Coverage is limited to money transported by employees and by a contracted … [Read more...]