In a time in which financial institutions find themselves increasingly in the cross hairs of liability challenges, effective insurance for banks has never been more important. Choosing a package of insurance products that ensures total coverage is a crucial step toward long-term security.
A Three-Pronged Strategy
With new threats emerging daily, financial institutions require the expertise of a broker specializing in bank insurance. An insurance bundle covering three main areas is a good start:
- Cyber Liability. More and more, banks are exposed to cyber risks resulting from data loss, customer identity theft, fraud or extortion. In April 2018, federal bank regulators released a statement strongly encouraging banks to consider cyber insurance as general liability policies do not offer protection from cyber claims.
- Professional Liability. Banks are particularly vulnerable to claims of negligence, wrongful acts and errors on the part of employees and officials. Several policy and endorsement options exist that specifically protect financial institutions from such claims.
- Crime Insurance. Few businesses are more susceptible than banks to debilitating exposure to criminal acts. Wire fraud is particularly rampant and ranks as perhaps the most dangerous new threat while an old one—employee dishonesty—will always be a serious problem.
Now more than ever, effective insurance for banks is essential to the long-term health of a financial institution. A comprehensive package of coverage is targeted to provide full coverage in a challenging environment.