Banks, Savings, Trust, Loan and Credit Union Insurance

While banks, savings and loan companies, and credit unions are perceived as safe-keepers for their individual, governmental, and corporate customers’ assets, they also operate as businesses themselves. In the course of handling, transferring, and transporting large sums of money, dealing with the public, and operating in an office setting, banks and other financial institutions, and their employees and owners, are subject to a variety of risks. Banks, savings, trust, loan and credit union insurance will make sure that their organization is adequately shielded so it can avoid potential legal and financial liability in the event a claim is filed, or a loss occurs.

Banking Insurance

In evaluating their business insurance needs, financial institution owners can reach out to an experienced commercial insurance agent to learn more about the available options for coverage, and policies offered by a number of different insurance companies. Likely, a seasoned independent agent will want to meet with them to discuss their organization’s operations, along with specific information about their institution, like how long it has been running, whether there is more than one existing branch, and the structure of the board of directors. A licensed independent business insurance agent will explain how most savings and loan, bank and trusts, and credit unions require both commercial general liability coverage, and building insurance. She can describe in greater detail how these kinds of coverage differ, and she might mention that many insurers permit businesses to carry both through the same insurance policy.

While working with a local independent commercial insurance agent to secure business insurance for their bank or credit union, owners will be asked about the assets maintained on the premises, and whether their organization has ATMs or other similar electronic services for customers. An independent agent will also want to know whether a bank or other financial business has had a loss in the past few years, or if an owner, or the institution itself, has ever been subject to a claim, or named as a defendant in a lawsuit. She may also ask whether any other person or entity should be named as an additional insured under a bank’s business insurance policy, such as a state or political subdivision, vendor, or charitable institution, or, if it is a public institution, an elective or appointive executive officer.

An independent business insurance agent might ask bank and trust and loan and savings owners about the kinds of coverage they need in their policy (checking lending limits and total assets), including workers’ compensation, business property and business personal property insurance, and insurance for shrubs, trees, and other plantings on the grounds of the premises. She may also discuss the exclusions for financial services; inspection, appraisal, and surety companies; insurance operations; and fiduciary or representative liability of a financial institution, which typically come as endorsements to a CGL policy.

To recommend the right business property coverage for a bank, or credit union, an independent insurance agent will want to know about any target theft items on a business’s premises, and the security systems in place for a vault or safety deposit boxes. She will ask about a financial institution’s annual business income, and whether a savings and loan or other operation has any unusual or high risk adjacent exposures. She will also want to know whether a credit union or bank and trust has ever been cancelled by a prior insurance carrier for any reason other than that the insurer stopped writing that class of insurance, and she may ask about the neighborhood crime score of the area in which a bank is located.

She might also ask about cash exposure in the vault and at the teller’s windows. She might discuss kidnap and ransom coverage and any international travel plans that directors or officers might have.

By working with an independent insurance agent who understands the local banking business, and knows the importance of securing proper commercial insurance coverage for a financial institution, owners of these companies can get answers to their questions about specific kinds of coverage, and determine the policy best suited to their organization. With business insurance through a local independent insurance agent, credit unions, banks, and other financial institutions can operate without interruption, and successfully safeguard their own, and their customers’ finances.

Commercial Insurance for Community Banks

Community banks are important fixtures in small towns, suburbs, and big cities. Their customers appreciate having an accessible local banker or financial advisor to handle their questions and administer their accounts, and many community banks are deeply rooted in a particular locale, having been family-operated for a number of generations. Whether they own a large-scale operation with multiple branches, or the only bank in a one-stoplight town, community bank owners should make sure that their business is protected with a commercial insurance policy. Whether they are interested in buying new coverage, or supplementing existing business insurance, bank owners can reach out to a trusted independent insurance agent to learn more about buying the appropriate policy for their institution.

Banker InsuranceAn experienced business insurance agent, familiar with the banking industry and bank owners’ concerns when it comes to adequately insuring their business, will guide them in finding commercial general liability insurance, business property coverage, and building coverage for their organization. He will describe available options for policies from a number of different insurance companies, and discuss the coverage afforded under each, along with any exclusions or limitations. He will answer bank owners’ questions about possible gaps in coverage, and recommend a commercial insurance policy that fits a particular community bank’s coverage needs.

In working with a local independent insurance agent to find the proper commercial insurance coverage for a community bank, owners can expect that the agent might discuss various kinds of business insurance coverage available for purchase. For instance, in addition to a CGL policy, an independent agent will likely recommend that a community bank obtain business property insurance, directors and officers insurance, and coverage for errors and omissions. He will discuss statutory requirements concerning workers’ compensation insurance, and may suggest that a bank purchase employment practices liability (EPL) coverage in case of a retaliation, harassment, discrimination, or wrongful-termination claim by a bank employee. An independent agent can also describe the benefits of having fiduciary liability insurance, and insurance for kidnap, ransom, and extortion, depending on a particular community bank’s coverage concerns.

A local independent insurance agent, up-to-date on risk management trends in the banking business, may want to discuss the increasing importance of protecting a community bank from cyber liability claims. He may discuss network content and privacy liability coverage, computer property insurance, and insurance for e-commerce extortion threats. Along the same lines, he might want to know details about the electronic storage and transmission services used by a community bank and its customers, and he will probably ask bank owners about data retention techniques, and consumer privacy practices.

With the guidance of a seasoned independent business insurance agent, community bank owners can review the varieties of commercial insurance coverage available to their institution, and choose a policy that affords the right coverage. A licensed independent insurance agent will serve as a trusted advisor to assist with a community banks risk management practices, and to help owners maintain and update their business insurance coverage according to the breadth of existing and developing exposures in the banking industry. With a commercial insurance policy through a local independent agent, community banks’ assets, data, and operations can remain secure.

Financial Institution Bond Insurance

The news is rife with stories of bank hold-ups, employees skimming money off the top of funds, and lawsuits against trustees, fiduciaries, and financial advisors. For banks, credit unions, and other financial institutions, the risk exposure that results from handling customers’ money and assets is widespread. To protect their business, they need quality commercial insurance coverage. One option to shield finance businesses from liability exposure is available through financial institution bond insurance.

Financial Institution Bond InsuranceAs an experienced business insurance agent can explain, financial institution bonds, formerly known as bankers blanket bonds, provide insurance for banks, savings and loan companies, and other financial institutions. For bank owners and directors, an independent insurance agent will mention that financial institution bond coverage can be provided on a special form drafted by an insurance company to go along with a bank’s commercial insurance policy, or through a standard form offered by the Surety Association of America. These bonds cover fraud by a bank employee, and other crimes like robbery, forgery, and burglary.

With the banking industry’s expansion into the global finance market, and new developments in technology in the past decades, financial institutions are at increased risk of harm as a result of losses or claims stemming from crimes involving employee dishonesty, theft, and computer-related misconduct. To safeguard an organization against these kinds of losses, an independent business insurance can discuss purchasing financial institution bond insurance with coverage for employee infidelity, damage to computers and content, and for alteration of checks and securities, or forgery. An independent agent might also suggest that a bank, loan and trust, or other financial institution buy premises risk coverage, which protects against damaged or lost property as a result of theft, insurance for counterfeit currency, electronic computer crime insurance, and insurance for cash in transit.

Privately-held and public businesses can purchase financial institution bonds to shield their company from various risk exposures. A seasoned independent business insurance agent will review a bank or trust company’s concerns about topics like securing automated device coverage for money lost due to ATM burglary, insurance for defective signatures on deeds, mortgages, or assignments, and coverage for losses resulting from fraudulent or unauthorized voice initiated transfers of funds. She may also mention that some insurance companies offer insurance for lost funds resulting from fraudulent fax transmissions, cash letter coverage for extra costs resulting from destruction, misplacement, or theft of a cash letter, and coverage for defense costs in case of a lawsuit against a financial institution concerning a loss covered under a bond.

Through a local independent insurance agent, banks, credit unions, and loan and trust companies can receive comprehensive information about financial institution bonds before they purchase a new commercial insurance policy, or supplement their existing coverage. Buying financial institution bond insurance through an independent business insurance agent means that, in the event of a crime, banks know that they have taken the right steps toward mitigating their losses.

For information about FDIC insurance >

Commercial Insurance for Financial Institutions

Bank InsuranceFinancial institutions come in many forms, from private to public, small-town banks or planners, to international operations. What these businesses have in common is that they advise and hold various assets for their customers and, in the course of doing so, are exposed to a host of risks. Like other companies, financial institutions face ordinary risks associated with running a business, like the potential for an employee injury, theft, or vandalism, but they also face added exposures related to the monies, valuables, and other business and customer assets housed on site. To keep their company covered in case of an unexpected loss, claim, or property damage to their building, or real estate holding, financial institutions need commercial insurance coverage. A local independent business insurance agent who knows the finance industry will guide company directors and officers in selecting a commercial general liability policy, and building a network of coverage that is suited to their organization’s needs.

Community banks, investment advisers, depository institutions, and credit unions all need commercial insurance coverage for their business. An experienced independent insurance agent can make sure that directors of these and other financial companies select a policy that affords adequate coverage based on the unique requirements of their business. He will work with bank directors, financial advisors, and corporate officers to make sure they understand the importance of having commercial general liability coverage, along with property and building insurance, and he can discuss options for commercial insurance policies available from a number of different insurance companies, detailing the coverage provided under each, along with any exclusions or limitations.

In working with financial institution executives to evaluate the appropriate commercial insurance coverage for their business, an independent insurance agent will probably discuss various kinds of coverage available including coverage for computer property and e-commerce, director and officer liability insurance, coverage for computer theft and financial institution bonds, and bankers’ professional liability insurance. He might also recommend that a bank or savings and loan operation purchase crime coverage, errors and omissions insurance, employment practices liability (EPL) insurance, fiduciary liability insurance, and even insurance for kidnap, ransom, and extortion, depending on the size, location, and operations of a particular financial business.

A local independent business insurance agent will help financial companies determine how their risks might evolve over time, and will help directors find coverage to address their business’s changing needs. With a commercial insurance policy with property, liability, building, and other necessary coverage, financial institution officers and directors know that in case of an electronic data breach, customer slip and fall, or property damage to a bank-owned property, their organization, and its holdings, can stay covered.

Other Enhanced Insurance articles related to Bank Insurance:

Bank FDIC Fidelity Insurance

Commercial Insurance for Bank Holding Companies

Commercial Insurance for Financial Institutions

Bank Owned Life Insurance

Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.

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