An Unbiased Review of Your Credit Union’s Insurance Coverage

 

Think Of The Risks Of Not Knowing…

How do you know your credit union has the right insurance?

Does your insurance program have gaps in it?

What’s the impact of a two hundred thousand dollar uninsured loss to your credit union?  How will your board react?

 

Would You Rather Know Sooner Or Later?

My water comes from a well. I test it every year. I want to know the water is safe. I could wait a few years between tests. I’d rather know I have a problem sooner than later.

I see my doctor annually for a check-up. He runs tests for diseases he does not think I have. I’m OK with that. I’d rather know I have a problem sooner than later.

Coal miners used to bring a canary in the mines with them. When the bird stopped singing it meant there could be deadly gas, and it was time to leave. Good to know there is a problem sooner than later.

Credit unions depend on all kinds of risk management tools to avoid and mitigate potential problems. An insurance review should be part of that process.

The best time to have your insurance reviewed
is a month before you have an uninsured loss.

Having an unbiased review of your credit union’s insurance is just good business – many consider it due-diligence.  Regulators, board members, employees, and other stakeholders (not to mention your boss) expect that you have made sure you have the right insurance coverage. The expectation is that you have no coverage gaps. Insurance overlaps are bad too – you’re wasting resources.

Without a comprehensive review of your credit union’s insurance, how will you know you have a problem? Wouldn’t you like to know sooner than later?


Why Credit Unions Hire Me For An Insurance Review

I work with credit unions all over the US. Each of them hires me for its own reasons. Most seem to have small doubts about their insurance that grow over time.

  • Perhaps insurance questions put to your agent are not answered convincingly.
  • Maybe there are doubts about the quality of your credit union’s insurance.
  • Maybe the credit union’s insurance agent is related to the CEO.
  • The CEO/CFO/CRO wants to be absolutely sure of coverage adequacy.
  • Perhaps your agent does not work with many credit unions.
  • Often the credit union board wants an independent insurance review.
  • Maybe you have doubts about your agent’s real insurance ability.

Has it been some time since anyone besides your agent has reviewed your credit union’s insurance?

My review of your credit union’s insurance will be quite straightforward…

You send me the policies you want me to review. I go over them (usually fortified with lots of coffee) and report my concerns to you.  I put my thirty years of insurance experience to work for you. I use the knowledge I have gained from my reviews of insurance for over three hundred financial institutions to improve your credit union’s insurance coverage. You get access to my insurance-brain. I’m told I talk about issues nobody else talks about.

I’m told I make credit union insurance understandable.


What’s The Impact On Your Financials Of A $500,00 Uninsured Loss?
What’s The Impact On Your Career?

 

Your Options:

Option 1 – I Review Your Management Liability Insurance Only

Bank Insurance Coverage

A review of your directors’ and officers’, management liability, employment practices, credit union professional, lender liability, cyber liability, and fiduciary liability. Project Fee: $2,200

Option 2 – I Review Your Credit Union Specialty Insurance

A review of your credit union specialty policies – directors’ and officers’, management liability, employment practices, credit union professional, lender liability, cyber liability, fiduciary liability, and your financial institutions fraud-bond. Project Fee: $3,800

Option 3 – I Review Your Credit Union Specialty & Standard Lines of Insurance

A review of your credit union’s specialty insurance – directors’ and officers’, management liability, employment practices, credit union professional, lender liability, fiduciary liability, cyber liability, financial institutions fraud-bond, your property insurance, general liability, workers’ compensation, umbrella liability, and auto insurance. Project Fee: $4,500

Option 4 – I Review All Your Insurance Policies

A review of your management liability, fraud-bond, standard lines, and your lender asset protection insurance – directors’ and officers’, management liability, employment practices, credit union professional, lender liability, fiduciary liability, cyber liability, financial institutions fraud-bond, your property insurance, general liability, workers’ compensation, umbrella liability, auto insurance, mortgage impairment, REO property, forced placed property, forced placed flood, and lender’s single interest. Project Fee: $6,000

 


The Review Process – How It Works and What Happens

You send me your policies and a summary of current insurance (usually from your agent). You complete an exposure form that helps me uncover unusual risks your credit union might have. We have a brief conversation about the process and your credit union. In about two weeks I report my ideas, concerns, and recommended strategies to you. I point out the gaps and overlaps in your credit union’s coverage. I give advice on the amount of coverage you buy and suggest areas where you should consider changes. My report is delivered in a conference call.  You’re welcome to invite key officers, directors, or your entire board to the session.

I present my findings and we discuss options. Your team is free to ask questions, challenge me, and make suggestions. These free-flowing sessions last between ninety minutes and two hours. Your team can ask as many questions as they like. Insurance clarity is the objective.

Frankly, the phone sessions are my favorite part of my job. Pragmatic, useful, valuable information is gained by your management. It’s in these sessions that the rubber meets the road.

After the session you get a summary of the conversation and a listing of the suggested tactics. From there you decide how you want me to proceed.  You can work with your agent or have me handle the mitigation conversations. I am available to help you in any way you need me.

 


How You Start The Process

Let’s start with a phone call to discuss your credit union’s current insurance concerns. Let’s talk to see if you need me. Let’s talk about what value I can bring to the table. Call me at 207-284-0085. I’ll answer the phone or get back to you in a few minutes. Call me. Of course you can email me too (Scott@ScottSimmonds.com).

 


Frequently Asked Questions

How long until you get the coverage report to us?

It depends on scheduling. I usually can get you on the calendar within two weeks of getting your policies. My practice is to schedule sessions as soon as I have been paid and have your policies. I understand that time is important. Also, claims can happen at any time. The sooner we identify an issue, the better.

How Do We Get Our Insurance Policies To You?

Many credit unions scan the policies and email them. You are free to mail a “hard-copy” if you like. If it is easier, use my secure download page to move files directly from your computer to mine.

Will your review reduce our credit union insurance premiums?

Sometimes. Usually I find gaps in the insurance coverage or adjustments that need to be made – that can mean additional premium. Would you rather spend one thousand dollars in extra premium or have a five hundred thousand dollar uninsured loss? Sometimes my recommended coverage additions can be negotiated at no additional premium. That’s where my expertise helps in the mitigation of the issues I find.

Do you review our employee benefits and life insurance?

No. These are specialty areas of insurance. To do benefits and life insurance takes a unique skill set that I am just not interested in acquiring. I’d rather be great at my part of the insurance business than mediocre at all types of insurance.

Do you sell insurance?

Never. I don’t sell insurance. I don’t accept fees or commissions from insurance agents or insurance companies. I never accept gifts or gratuities from insurance agents or insurance companies. My only interest is the best interest of you, my client.

Do you work in personal insurance?

Rarely. Sometimes there is an individual question or issue. I’m glad to pitch in on that.

After the first call you make us talk with some assistant, right?

No. You call me, you get me. You email me, I respond. I return all phone messages within ninety minutes and emails within a business day. You hire me, you get me. I answer my own phone and respond to emails sent to me.

What if I don’t know what questions to ask? I’m no insurance expert.

In the review I provide a list of items that need to be addressed, and recommendations on how to address them. You work with your agent, and I am available to help. I can even talk with your agent if that will make things easier. We can set up a conference call to talk about the coverage concerns.

How responsive are you to calls and emails?

I promise a callback within ninety minutes and a reply to emails within a business day. Frankly, most times I answer my phone, since it allows me to deal with issues quickly. I have set up my practice to provide an exceptional level of service to my clients, and I want you to renew year after year.

How do we know if you are any good?

I’m glad to provide references. You can also look at my client testimonials.

Do we have to change insurance agents to work with you?

Absolutely not. I’m not an insurance agent. Many credit unions have a close relationship with their agents. These are important and often must be preserved. I understand the credit union business.

By the way, I have no financial ties to any insurance agent or insurance company. I never sell insurance and never accept fees or commissions from the insurance agents or insurance companies I work with. I don’t even let them buy me lunch. I don’t invest in companies that own insurance agencies or insurance companies. (I do hold a few mutual funds that probably own an exceedingly small amount of insurance stock. My investment portfolio is professionally managed. While it is not a blind-trust, I do not make individual investment decisions.)

 


The Mentor Option – Unlimited Insurance Expertise

Frankly, this is not for every credit union. Most credit unions hire me to review coverage then retain me to be an ongoing part of the team. However, I often hear, “I wish I’d done the mentor program from the start.”  It is the option that provides the most value. Starting here is more economical and beneficial to the credit union.

I review all your policies (directors’ and officers’, management liability, employment practices, credit union professional, lender liability, fiduciary liability, fraud-bond, property, liability, auto, workers’ compensation, umbrella, mortgage impairment, REO property, forced placed property, forced placed flood, and lenders single interest).  I’m also available for any insurance issues that come up during the year. Twelve months of unlimited help and assistance. Claims, renewals, mergers, acquisitions… You call me on any insurance issue. Annual Fee: $10,500.

The best way to start the mentor option is a phone conversation. Call me at 207-284-0085. Feel free to email me too. Scott@ScottSimmonds.com.

 


We Can Start Right Now

Call me (207-284-0085) and we can talk about your credit union and your insurance. Let’s talk about the issues that concern you. Maybe you’re more comfortable emailing and setting a time for a phone call (Scott@ScottSimmonds.com). I’m glad to.

My objective is always to move things forward quickly. The best time for a credit union insurance review is the month before you have an uncovered loss.

The best time for a review of your insurance is right now – let’s find the trouble before you have an incident.