Internet Banking Liability Insurance
As a result of the potential gaps in traditional insurance policies, many insurance companies are introducing “E-insurance” policies. Most, however, are designed for e-commerce businesses, not for financial institutions engaged in Internet banking.
As you evaluate these new products, you will find that coverage is expensive, mirrors the basic coverages that financial institutions already have under their Bond, and may not address the real gaps in coverage or risks relevant to financial institutions.
In order to address the needs of community banks, the ABA-sponsored and GBA-endorsed insurance program has developed an Internet banking insurance program separately for financial institutions engaged in Internet banking. The Internet Banking Protection Package, recently approved in the state of Georgia, is a unique insurance solution for community banks. Two interconnected policies provide first-party and third-party coverage to fill the gaps where traditional insurance policies do not extend to Internet risks. First-party protection is provided through the Enhanced Financial Institution Bond and third-party protection via a separate and distinct policy - the Internet Banking Liability Policy.
The Internet Banking Protection Package is designed to cover Internet banking, PC/home banking, and other electronic banking activities through the following interconnected policies:
A. Enhanced Financial Institution Bond- Fills the gaps in the standard Bond by providing coverage for loss due to:
B. Internet Banking Liability Policy
The Georgia Bankers Association worked closely with the ABA to institute
this program at a time when most insurance carriers were either exiting
the market or quoting extraordinarily high rates. To find out more
about this program or to provide your bank with a competitive proposal
Senior Account Executive
ABA Insurance Services Inc.
5910 Landerbrook Drive, Suite 100
Mayfield Heights, OH 44124