Before only a select few insurance companies, namely Lexington Insurance, Complete Equity Markets Inc., and Chubb Insurance provided this type of coverage, but recently it has opened up and the price has come down. The cost of coverage can be reduced by practices including, having a thorough employee manual, stringent hiring practices, and an adept review board. DeJong says some insurance companies are seriously considering including it in their general liability policy. In March of this year the Supreme Court ruled that national banks can sell insurance from small-town branches to any customer at any location. As banks make insurance sales a part of their services, the need for coverage to protect them against any of their agents' mistakes is crucial.
Banks are really new and naive and are being had by marketing organizations.
Since banks are bound to make more mistakes than they care to think about, agents' errors and omissions is preferable to self-insuring. The dizzying array of risk-management theories, programs, and options now being peddled hasn't fazed Sanwa's Ojeda. Putting together Sanwa's program, staff considered and adapted pieces from many sources and consultants, the latter including Arthur Andersen's Business Risk Model. Models out there run from the spare to the excruciatingly specific. You have to strike a balance between complexity and usefulness.