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Financial Institutions Insurance

Customized insurance and risk management pays dividends.

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Spotlight on: Insurance for Banks and Financial Institutions

As a bank or depository institution, you know better than most the importance of protecting the bottom line. But if your risk management program doesn’t keep pace with emerging exposures posed by advancements in technology, federal regulations and new business ventures, you may not have adequate protection in place—protection beyond insurance coverage. 

That’s what we deliver – custom insurance and risk management solutions for financial institutions.

From property and casualty to management liability, fiduciary liability, professional liability, social engineering coverage and more, our insurance solutions are built around your unique insurance protection needs.

The Higginbotham Difference: We start with listening.

Capable of getting things done that other brokers can’t, our transparent and authentic approach to insurance for banks and financial institutions provides peace of mind.

Our seasoned insurance professionals start with listening and end with custom insurance solutions tailored to the needs of your organization.

And our work doesn’t stop there.

We deliver year-round value with Day Two Services® that support your risk management efforts 365 days a year, helping control your risk and transforming your uncertainties into opportunities.

Because while insurance is our something, our customers are our everything.

To learn more about how our values-based approach creates value for you and your business, click here.

Or visit our Insights page to learn more about financial institution risk management.


You deserve an insurance partner with a vested interest in your success.

Designing an insurance plan that fully considers the complexity of your operation and risk exposures can be unnerving.

With our nationwide network of insurance carriers and deep financial industry experience, it doesn’t have to be.

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Financial Institutions We Serve

We know what exposures to look for because we have experience designing tailored protection to diverse financial institutions, including: 

Community Banks

Large Public and Private Regional Banks

Credit Unions

Mortgage Bankers

Investment Firms

Insurance Agencies and Companies

We had worked with a small broker who handled our renewal each year. I never got the feeling he was working for us. We knew we needed someone to look out for our best interest, and they saved the day.

Monique D.
Controller, Staffing Industry

Coverage for Financial Institutions and Banks

If you’re interested in learning more about your options, these insights were written with you in mind.

Due to the complexity of running a financial institution, a wide range of coverage is available for your insurance program; each tailored to a specific risk.  

While every coverage package we design considers your location, operation and unique risk exposure, these are some of the most common bank and financial institution insurance coverages.

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Employment Practices Liability Insurance (EPLI)

Employment Practices Liability Insurance (EPLI) is designed to cover the cost of employee claims of wrongful acts resulting from the employment process. This coverage can help you with the cost of defending claims of wrongful termination, discrimination, sexual harassment and other improper employment practices.

Fiduciary Liability Insurance

Also commonly known as “management liability insurance,” fiduciary liability coverage can help you with the costs of claims resulting from a breach in fiduciary duty.

Directors and Officers (D&O)

Designed to protect directors and officers from personal loss if they’re sued, D&O insurance is a crucial management liability coverage for financial institutions to carry. In most cases, D&O can also help cover the organization itself, helping with legal costs, settlements and other expenses related to a covered incident.

Bankers Professional Liability (BPL)

Like D&O for the other employees of financial institutions, bankers professional liability coverage can help investment advisors and other professionals with professional or fiduciary liability pay for legal defense and resolution of customer claims of wrongdoing, negligence, errors and omissions.

Securities Liability

Tailored to the financial risks of non-compliance with wrongful securities acts, securities liability insurance can help cover the cost of an actual or alleged error, omission, misleading statement, act of negligence or breach of duty committed in the process of selling securities issued by a financial institution. From inaccurate reporting on market valuation to willful deception, this coverage can considerably limit your liability. 

Trust Errors & Omissions (E&O)

Also known as “trustee liability insurance,” this coverage is designed for banks and financial institutions. Built to protect against the liabilities faced by bank trust department employees, trust E&O can help with the cost of defending allegations of improper investment of trust assets, failure of a stock agent to effect a transfer within the mandated time limit, deliberate devaluation of trust assets and more.

Financial Institution Bonds (FI)

Financial institution (FI) bonds are surety bonds designed to protect banks and financial institutions from losses stemming from theft, robbery, employee dishonesty and other financial crimes. Most financial institutions are required to carry FI bonds by law.

Cyber Liability

Since the Equifax data breach in 2017, the popularity of cyber coverage has skyrocketed. Also known as “privacy liability,” this coverage can protect financial institutions against losses stemming from failure to protect sensitive customer information, such as credit card numbers, Social Security numbers, medical information, passwords and more. If your bank or financial institution falls victim to a cyberattack, this coverage can help with the resulting legal and administrative costs incurred in rectifying the situation.

Computer Theft

Due to the sensitive client information stored on a financial institution’s computers, computer theft insurance is crucial. This coverage can help with legal costs and other expenses resulting from the theft of a computer from a bank or financial institution.

Identify Theft

Unlike most other coverages on this list, identity theft insurance focuses on protecting end consumers against the costs of having their identity stolen. While most financial institutions carry insurance designed to help if they’re at fault, a victim of identity theft can get stuck with the bill if no other responsible party is identified. If your identity is stolen, identity theft coverage can help with the costs of hiring a consumer fraud specialist, replacing compromised government-issued identification(s), settling civil judgments, criminal charges, audits, hearings and attorney fees.

Internet Banking Liability Insurance

This coverage limits a bank or financial institution’s financial responsibility in the aftermath of a violation of the Wrongful Internet/Electronic Banking Act. Capable of covering perils ranging from invasion of privacy to libel, loss of business opportunities, unauthorized access to a customer account and more, internet banking liability insurance is a smart investment for financial institutions that offer online banking.

Property & Casualty Policies

Financial institution property and casualty insurance is a portfolio of coverages tailored to the property-related risks faced by a financial institution, credit union, insurance company or bank. This coverage can help pay for repairing property damage or remedying a bodily injury.

Other Real Estate & Forced-Place Insurance

Forced-place property is a specialty coverage designed for lien holders. Should a borrower allow the legally mandated coverage on a mortgaged property to lapse, this coverage can help reimburse the lienholder for uncovered losses that may result. Most forced-place policies are for the benefit of the lienholder.

General Liability

Also known as “business liability insurance,” this coverage can help with the costs of legal claims resulting from property damage, bodily injury, personal injury and more.

Workers’ Compensation

Worker’s compensation is a statutory benefit prescribed in state law requiring most employers to compensate employees or their families for lost wages and medical care due to job-related injuries resulting from accidents or occupational disease.

Kidnap & Ransom (K&R)

If your financial institution has employees who travel abroad, you should seriously consider adding K&R coverage to your insurance policy. Also available as a standalone personal coverage for individuals, kidnap and ransom insurance can help cover the cost of ransom payments, loss of income, interest on bank loans and medical care in the aftermath of a kidnapping.

Risk Management Services

At Higginbotham, we take a consultative approach to customer service and risk management.

Whether you have a single policy, a commercial package or many insurance policies covering multiple locations and risks, we take the time to understand your unique needs so we deliver the best coverage at the best price available.

But we don’t stop there.

Our work continues 365 days a year. We have a Day Two Services® team that works in tandem with our risk management specialists to deliver year-round value.

From help with compliance to safety audits and claims advocacy, our Day Two Services® team helps you mitigate risks, avoid costly claims and better position your operations so you can focus on what matters most: growing your business.

Meet Our Financial Institutions Insurance Practice Leader

John Huggins joined Higginbotham in 2001 after 23 years with AON Risk Services. Over the years with Higginbotham, he focused his expertise on marketing and servicing Management Liability, Professional Liability and Property & Casualty insurance coverages for publicly traded and privately owned financial institutions. John prides himself on in-depth coverage analysis that helps uncover potential gaps, coverage duplication and restrictive policy language. He partners with leading wholesale brokers to ensure broad market searches result in competitively priced and broadly written proposals.

A graduate of the University of Texas at Arlington, John has also earned Certified Risk Manager (CRM) and Certified Insurance Counselor (CIC) designations.

Managing Director
John Huggins
Managing Director, LinkedIn
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Work with a financial institution insurance specialist who knows your industry.

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