The Professional Liability Group of the Progressive Corporation introduced an Internet Banking Protection Package (IBPP), which provides coverage for community banks engaged in Internet banking. The IBPP complements its existing products for financial institutions.
Comprised of two interconnected policies, the Internet Banking Liability Policy and an enhanced version of the existing Financial Institution Bond, the IBPP is a comprehensive insurance product designed to fill the potential gaps in banks’ traditional banking insurance policies.
Gina Juhnke, product manager for Progressive’s Financial Institution Program, stated that after extensive research, it became apparent that the insurance industry had not kept pace with emerging exposures related to technology, and traditional policies did not adequately cover losses resulting from Internet banking.
Even though many insurance companies have identified gaps in coverage, according to Juhnke they have not taken the extra step to cover what is relevant to banks.
The Internet Banking Liability Policy broadly covers liability losses arising from the provision of Internet banking services, including but not limited to: invasion of privacy; libel, slander and defamation; damage to electronic data of a customer; denial of service; loss of business opportunity; unauthorized access to a customer account; and infringement of copyright or trademark.
The enhanced version of the Financial Institutional Bond extends coverage to the Internet realm — including loss resulting from the fraudulent transfer of funds through the Internet or a PC/home banking program by a dishonest employee, a customer or a third party. Reconstruction costs due to the destruction of data or programs caused by hacker or virus activity are also covered.
The IBPP is available through the American Bankers Association (ABA) sponsored insurance program, a partnership of over 1,400 community banks, the ABA, Progressive Insurance, and 26 state bankers associations. Independent agents countrywide can access the program and request an appointment to represent the product by calling (800) 274-5222, or logging on to www.progressivebanks.com.
Progressive’s Professional Liability Group has been a provider of financial institution insurance products since 1986 as underwriter of the American Bankers Association-sponsored insurance program. The program provides coverages expanding upon the traditional Financial Institution Bond, Directors & Officers Liability, Trust Errors & Omissions, and Employment Practices Liability.