Insurance for New Bank Charter

Independent Bankers Insurance Services has considerable experience insuring banks in organization. We use three of our major carriers: Chubb, St. Paul Travelers, and Progressive Insurance to obtain bids on proposed banks or banks in organization.

We insure new banks on an "as needed" timeline to mitigate insurance costs that will impact the new bank's budget. We recommend that new banks initially cover their minimal property values and general liability exposure while they are organizing. After this insurance is in place we will add furniture and fixtures, EDP equipment, and tenant's improvements and betterments coverage (or owned building) to the policy as they are acquired.

Before your proposed bank begins the capitalization process we strongly recommend purchasing at least $1,000,000 of basic Directors and Officers Liability coverage to protect the organizers of the new bank. Approximately two weeks prior to officially opening the new bank, we will increase the basic D&O policy limit to an appropriate level and add the necessary entity endorsements, such as lender liability and employment practices liability. We will also activate the Financial Institution Bond coverage at this time so it will be in place for the new bank's pre-opening exam.

We do not require applications to secure proposals for new banks. We only ask that you forward your application for a charter including your prospectus (if completed) financials, 3-year pro-forma, and biographies of the bank's senior officers. Additionally we request you include a list of the proposed bank's directors and their outside business affiliation. We also need to know whether your bank will be offering ATM machines and Safe Deposit Boxes.

We will personally assist you in completion of your Financial Institution Bond and D&O applications after you have selected your insurance carrier from one of our proposals. When all coverages have been selected and bound, we will prepare a comprehensive review of your policies for your board of directors and senior management. We will also have agency personnel available to make an insurance presentation to your board of directors and senior management at a mutually convenient time.