Linking your in-house or local insurance agent with collateral and loan protection agents can be beneficial.
In many markets, the financial institution’s local insurance agent or financial institution-owned agency provides the advice and coverage for protections such as Executive and Professional Liability, D&O, Cyber Risk insurance, Bond programs and more. These agencies are important partners in protecting your institution from a myriad of existing and emerging risks. And, though these agencies typically offer a full menu of bank-specific protections, many do not offer many crucial collateral protections, such as Blanket Mortgage or Mortgage Impairment, commercial equipment coverage, or auto coverage.
Read our blog post: What does Blanket Mortgage Protection Cover
A solution to bridge the gap between the protections provided by your local agent and the need to protect the institution’s collateral is to encourage your agent to partner with another agency that specializes in collateral protection coverage. These arrangements can be especially beneficial to the institution as the local agent understands the insurance needs of the bank and can help guide the collateral protection provider in the customization of needed collateral protection. Furthermore, depending on the level of involvement the local agency provides, they would likely qualify to receive compensation from the collateral protection provider based on that level of assistance.
In short, recommending your local insurance agency to partner with a collateral protection agency for coverage can be an extremely effective exercise to validate that the financial institution is receiving the most comprehensive coverage that collateral protection insurance can provide.