Financial Institutions

Guidance, advice and advocacy to safeguard financial institutions.

Who Needs Financial Institution Insurance?

Our specialists in financial institution insurance have a wealth of knowledge and expertise to help review your risk, while assisting you in creating a tailored risk management program that empowers you to operate with peace of mind.

With a focus on insurance, risk mitigation and human capital needs, our services cater to four distinct types of businesses.

Simplified Risk Management Solutions for Your Financial Institutions

ZRM Brokerage offers tailored services and specialized knowledge to small businesses, regional firms, and companies with an national footprint. We prioritize your peace of mind and position your organization at the center of our network.

Let’s work together to locate and close gaps in your coverage through risk analysis and securing coverage including professional liability, directors & officers, crime and cyber insurance. Our team helps your financial institutions better serve clients through specialized products and services including:

Financial Institutions Insurance FAQ

There are various types of financial institutions, each of which is insured differently. Those institutions that accept deposits, such as banks and savings and loan associations, are protected by FDIC insurance. The NCUA offers the same kind of protection for credit union deposits. SIPC Insurance will cover some losses if the broker-dealer fails financially, but does not provide any form of protection for investment losses.

The FDIC, a federal agency that offers protection to customers with deposits in insured banks, has a limit of $250,000 on its insurance coverage and does not cover investments such as stocks, bonds, mutual funds, or money market funds. Similarly, the National Credit Union Administration (NCUA) covers credit union deposits.

The Security Investor Protection Corporation (SIPC), which is a non-profit institution founded by government statute, ensures customers of its member broker-dealers if the firm faces financial issues. SIPC’s coverage limit is $500,000 however it does not protect from losses if their values decrease.

Besides FDIC insurance for safeguarding customers’ deposits, banks must also obtain insurance against the risks associated with doing business. Directors & Officers (D&O) liability insurance is an essential tool for all banks regardless of their size or locality. Additionally, banks should have commercial general liability insurance.

Apart from the general insurance, banks should also include more specialized forms of coverage, such as professional liability insurance, workers’ compensation, data breach insurance, commercial crime insurance, commercial umbrella insurance, and fidelity bond coverage.

Banks can obtain federal deposit insurance by filing an application with the relevant FDIC office. When an account is opened at a FDIC-insured bank, coverage is granted automatically.

To be officially approved, banks must comply with the minimum capital requirements and insurance provisions, as well as regular financial audits mandated by the FDIC. Additionally, specific FDIC conditions may be issued on an individual basis.

The FDIC, created by the federal government in 1933 to maintain public confidence, is an independent agency backed by the US government that guarantees deposits at member banks in case of bank failure.

The majority of banks, including online banks, are FDIC-insured.

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