Loss Control for Financial Institutions

Topics: Loss Control

When it comes to choosing insurance, most financial institution managers consider how well a potential insurer will handle a claim. Of course, this is important, as it’s why we buy insurance, and it’s often hard to differentiate why one company may be better than another.

However, in today’s competitive environment, prospective customers should also ask themselves “What is my insurance company going to do to help prevent a claim?”

Loss Control Services to Reduce Risk for Financial Institutions

loss control for financial institutions

Consider whether an insurer has the following features in their loss prevention program to determine if they are worthy of your business.

Risk Management Employment Practices

Insurance companies sometimes contract with attorneys or HR firms to help prevent employee-related suits (discrimination, harassment, etc.). The scope of services varies greatly, as some loss prevention programs provide best practices advice, whereas others will provide actual legal counsel. Some firms will limit their services to a number of hours or phone calls – while others provide broader or unlimited service. Either way, some key features to look for in an excellent Employment Practices Loss Prevention program are:
  • Hotline service allowing you to ask questions on employee-related matters
  • HR documents, such as Hire-and-Fire worksheets, interview checklists, and more
  • Employee handbook templates that are customizable
  • State employment law updates
  • HR/employee training
  • Cybersecurity policies
Ensuring loss prevention measures are up-to-date is a never-ending battle in cybersecurity. That said, you, as a prospective customer, will want to ensure an insurance company’s pre-breach loss prevention services are evolving as quickly as the cyber criminals. Consider these features a sign of a solid cybersecurity loss prevention program:
  • Self-assessments to ensure current systems and processes are in line with the exposures
  • Breach response planning tools so you know what to do and who to call when a breach occurs
  • Security training access
  • State law updates and other cybersecurity news
  • Breach prevention best practices
Lastly, any good loss prevention program should be integrated into the insurance company’s claim process in the event a claim does happen. Ideally, the law firm providing loss prevention on employment practices should have an open line of communication with the company’s claim staff or, better yet, be their panel counsel. Companies providing cyber loss prevention should also provide a breach coach that walks the customer through a breach step by step.

Considering these features of an insurer’s loss prevention program will help your financial institution choose an insurer that has your best interests covered. Contact us today to learn more.

This material is for informational purposes only and is not legal or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors. Coverages may vary by location. Contact your local RSM for more information.

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