What Insurance Does a Financial Institution Need?

Like any other type of business, financial institutions need to protect themselves when working with the public or other businesses. Due to the volatile nature of the industry, it is important for banks and other businesses that deal with high volumes of money to have financial institution insurance. There are several types of coverages available.

Types of Insurance For Financial Institutions

Financial institutions require several types of insurance. Liability insurance is perhaps the most important and should cover a wide variety of situations. In addition to general liability insurance, financial institutions should have liability policies that cover directors, officers, and employees, as well as errors and omissions, trusts, cybercrimes, and employment practices. There are several other types to consider as well.

  • Collateral Security – These policies cover mortgage impairment, foreclosure, blanket mortgage hazards, and more.
  • Group Benefits – These policies provide benefits for employees that include health, dental, vision, and life insurance.
  • Kidnap Insurance – Kidnap, ransom, and extortion policies protect high-value businesses and individuals.
  • Property Insurance – This coverage is for buildings and their contents, including policies that cover floods and earthquakes.

Finally, while working in a financial institution isn’t necessarily considered a dangerous job, it is still preferable (and often required) to have a workers’ compensation policy in case someone is hurt on the job.

The amount of coverage that a financial institution needs varies depending on its size and the services it provides. The best option is to work with an agency that specializes in insurance for financial institutions.