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There are good reasons to consider Financial Institutions insurance from AIG

A sector with unique challenges

In a difficult economic environment, businesses in all sectors face challenges.  Many financial institutions face additional pressures generated by increased regulation, robust capital and lending criteria, and a global drive to improve disclosure, increased transparency and enhance shareholder protection. 

AIG takes a specialist approach

This is why the specialist liability needs of financial institutions and financial service providers are addressed by our dedicated team. Their brief is to stay abreast or ahead of developing regulation reform so that our products can be constantly revised to provide appropriate insurance cover for emerging areas of risk. 

Who is it for?

Commercial banks, savings banks, and savings and loan institutions that offer professional services to third parties for compensation, as well as their directors, officers, partners and employees.

For firms based outside of the USA and Canada, coverage may be written on a worldwide basis, including the jurisdictions of the USA and Canada. For USA and Canadian companies, coverage plans are offered for foreign operational exposures and for liabilities arising from products exported from the home country.

What is covered?

The financial institutions Directors & Officers Insurance policy provides coverage for claims brought against directors and officers of a company for actual or alleged breach of duty, neglect, misstatements, errors or omissions.

Coverage includes advancement of defence costs granted prior to final disposition of a claim for individuals when the financial institution cannot provide such costs. Reimbursement for indemnification of directors and officers for any judgments, settlements, and defence costs associated with covered claims when the company has indemnified the insured for loss.

Who is it for?

Directors and Officers of commercial and investment banks, stock and mutual insurance companies, reinsurance companies, and non-banking financial institutions.

For firms based outside of the USA and Canada, coverage may be written on a worldwide basis, including the jurisdictions of the USA and Canada. For USA and Canadian companies, coverage plans are offered for foreign operational exposures and for liabilities arising from products exported from the home country.

This policy provides the protection required by Banking and Financial Institutions while being flexible enough to handle tomorrow's needs. The protection provided is against losses caused by employees and external crime committed by third parties. The Financial Institution Bond is a pure financial loss insurance product, which provides balance sheet protection.

Who is it for?

Financial Institutions including:

  • Bank Holding Companies
  • Commercial Banks
  • Building Societies
  • Insurance and Reinsurance Companies
  • Stockbrokers
  • Mutual Funds and Advisors
  • Finance Companies
  • Mortgage Companies
  • Credit Unions
  • Clearing Houses
  • Electronic Data Processing organizations

For firms based outside of the USA and Canada, coverage may be written on a worldwide basis, including the jurisdictions of the USA and Canada. For USA and Canadian companies, coverage plans are offered for foreign operational exposures and for liabilities arising from products exported from the home country.

What is covered?

  • Employee Fidelity - covers losses resulting from dishonest and fraudulent acts committed by employees.
  • On Premises Loss - covers losses from robbery, burglary, misplacement, mysterious disappearance, damage or destruction of property.
  • Loss of Property in Transit - covers property stolen while in the care of a bank employee or in the custody of a transportation company.
  • Forgery or Alteration - covers forgery or unauthorized changes to securities or negotiable instruments.
  • Currency Coverage - covers losses due to receipt of counterfeit currency issued by any ountry where the institution maintains a branch office.

  • The financial institution bond may be expanded to include other exposures such as unauthorized trading losses and breaches of computer system security. Following are some selected policy and coverage highlights:
  • Automatic Teller Machines
  • Stop Payment Legal Liability
  • Transit Cash Letter
  • Computer System Security
  • Electronic Data Processing

Policy Elements

  • One Year Policy
  • Discovery Basis
  • Limits of Liability Up to $35 Million

Increasingly, bankers and their institutions are vulnerable to lawsuits alleging failure to render professional services and commitment of errors and omissions in the execution of professional services. BPL insures bankers and banking institutions against claims of actual or alleged wrongful acts, errors, omissions and failure to render such professional services.

Who is it for?

Commercial banks, savings banks, and savings and loan institutions that offer professional services to third parties for compensation, as well as their directors, officers, partners and employees.

For firms based outside of the USA and Canada, coverage may be written on a worldwide basis, including the jurisdictions of the USA and Canada. For USA and Canadian companies, coverage plans are offered for foreign operational exposures and for liabilities arising from products exported from the home country.

What is coverd?

Provides payment for defense costs, settlements, judgements and other legal expenses.

  • Covers claims brought against the insured anywhere in the world
  • Offers Employed Lawyers Professional Liability coverage as an option.

BPL can be customized in almost any way to serve a financial institution's insurance needs (subject to policy limitations). BPL offers one of the most economical ways to secure a comprehensive professional indemnity program.