Insurance Coverage For Bankers, By Bankers

Last month I had some fun with my column and included a caricature of our three officers on a road trip to our convention in San Diego. Now it's time to return to a serious subject: insurance coverage for your bank.

Imagine the following scenarios. Your bank has been struck by a natural disaster. Or, an employee has embezzled large amounts of money. A customer slipped and fell in your lobby. Who do you trust to handle the claim: an insurance company that handles claims for all types of businesses - from grocery stores to retailers - or one that has specialized in the banking industry since its inception in 1985?

Most banks, I think, would prefer the latter. BancInsure offers financial institution bond, directors & officers, property & casualty insurance and workers' comp. Not only was Banclnsure created by bankers, but its board includes several former bank presidents and two banking association executives. The Texas Bankers Association is an equity owner, and I have the opportunity to serve on the Board of Directors and Administrative, Marketing and Claims Committees. How many of you know anybody on your insurance company's claims committee? If you're not insured by Banclnsure, it's unlikely that you do.

As equity owners, Banclnsure is our product. Much of the revenue we receive from commissions on policies we sell flows up to TBA as non-dues revenue, which is one of the reasons we've been able to keep our dues low.

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Brien O'Connor, Latresa Powell and Pat Fleming.

Over the years, the presence of Banclnsure has forced premiums down to the benefit of the Texas banking community. Plus, innovative products have been created to fill holes in banking exposures.

Brien O'Connor and Latresa Powell are the risk management experts who sell Banclnsure products through Bankers Insurance Agency. Latresa and Brien hold the Certified Insurance Counselor designation, and both have been instructors for TBA and other insurance education programs around the state. Together with Pat Fleming, Brien and Latresa are important resources for you in assessing and managing your insurance risks. Amy Wright provides the team with administrative support.

Just last month, Brien attended our Community Bankers Council meeting to update members on insurance issues, including how often coverage for disaster recovery losses is inadequate. Brien explained that a provision of the Commercial Package policy provides this important coverage, but is often overlooked by the bank's local agent. Brien received several questions during and after the meeting.

Because insurance issues are always hot topics, we will be including a column in our e-newsletter, Texas Banking Weekly, on claims scenarios, including gaps and pitfalls in bank insurance programs.

Next time your insurance policy is up for renewal, please give Brien or Latresa a call at 800-318-4142 and let them give you a quote. For the price of your policy, you receive a good product backed by strong expertise. And, your qualified insurance team provides expert advice and service.

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"Not only was BancInsure created by bankers, but its board includes several former bank presidents and two banking association executives."

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By Rick Smith, TBA President