FAQ – Bank Insurance Coverage Review

Here are some of the most frequent questions I get asked about my insurance coverage reviews for banks…

What types of banks do you consult for?

All types. I have worked with banks of all sizes and styles. Some of my clients are financially strong and others are having problems. All are looking to be sure that their bank is well protected and has the best insurance coverage the marketplace has to offer.

What states do you operate in?
All states. By using email and the phone, my work is not restricted in any way. Where state licenses are required, I obtain the non-resident license from your state insurance department.

Ours is a very small bank. What are our options?
I work with banks of every size. Contact me to discuss your bank’s needs.

Do you ever work on a contingent fee basis? If you save us money, we split the savings?
Sorry, no. Contingent fees put too much emphasis on the premium. My objective is overall value to my bank clients – coverage, service, and premium. I always work on a flat, fixed fee basis.

Will you need to come to our bank?
Usually not. I use email and phone to communicate with my clients. I can certainly offer a separate fee for on-site visits in case you want me there. Frankly, it is rarely necessary to accomplish the project objectives. Of course, if you really want me, I’ll come to you.

Do you share in any commissions on insurance sales?
Never, never, never, ever. I don’t sell insurance. I never accept commissions on policy sales. I don’t accept gifts from the insurance agents or insurance companies I work with for my clients. The last thing the bank insurance world needs is another person selling policies.

How long does it take to complete a project?
From the time I get all your policies and other information, a complete review usually takes less than ten days. The remediation of some issues can take months. Let’s talk about your situation.

What types of issues do you uncover in your bank insurance reviews?
The most common problems include who specifically is insured by the policy, improper coverage design, missing exposures, and the wrong insurance company for the exposures present. I recently found a bank insurance plan with no lender liability coverage and no trust department errors and omissions insurance. That was pretty shocking!

What is your typical fee?
Project fees range from $4,500 to $30,000. Let’s talk about your bank’s situation. Call me.

How do your clients pay your fee?
All fees are due prior to the start of the project.

Why are your fees due at the start of projects?
Simple; I love providing value to my clients. I hate thinking about getting paid. Getting my fee up front means that I am 100% focused on providing my clients with value.

What types of policies do you review?
I get involved in all types of insurance: property, liability, auto, directors’ and officers’, professional liability, employment practices, workers’ compensation, bank bond, inland marine, machinery, mortgage protection, and all similar property and casualty insurance policies.

If I work with you, will I still need an insurance agent?
Yes. I do not replace your insurance agent or your insurance company. I supplement your knowledge and provide you with the skills your bank needs to successfully manage your insurance. I supplement your bank’s risk management capabilities.

What do you mean when you say that you are unbiased?
I never accept fees or commissions from the insurance agents or companies I work with for my clients. I never accept gifts or gratuities from insurers or agents. I don’t even let them buy me lunch. I never invest in insurance companies – except in mutual funds where insurers are an incidental part of the fund investments.