Agents can help their financial institutions clients review and update critical coverage elements by working with them to:

Include lending portfolios in risk assessments: The type of lending a financial institution practices creates different potential liabilities. A consumer-focused portfolio may create more exposure for regulatory claims, while a commercial exposure may invite more litigation for claims based on "livelihood" arguments. Exposures also shift for lending programs that involve outsourced lending, participation, and indirect loans. Understanding these different lending arrangements can help guide loss prevention practices, and an assessment of policy language can help ensures an adequate response is in place for potential losses.
Understand existing loan portfolios: Repossessions and foreclosures can generate counter-claims. Adequate protection should be in place to address mortgage impairment, mortgage errors, and omissions and liability from the administration of escrow funds, tax liabilities, and flood assessment scoring. An error in one of these areas can leave a financial institution responsible for claims, payments and fees. Agents who understand their clients' lending activities and effectively insure against those can help best protect their clients.
Have strong D&O liability coverage in place: With recent events, a high amount of market volatility can significantly influence bank profitability. Smaller firms are particularly susceptible to the impacts of the volatility in the capital markets, which can lead to potential bank failures and distressed situations. Having robust directors and officers insurance coverage in place is critical during these periods of extreme market volatility as various stakeholders, including regulators, will take an increasingly closer look at management's actions during these volatile times.

Just as community banks play a critical 'relationship-based' role in their communities, offering specialized knowledge of their local communities and customers, independent agents play an important role as risk advisors, helping guide their clients in thinking critically about their risks and developing and implementing cohesive risk management programs.

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Now is the time for agents to protect financial institutions clients

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