Insurance Due Diligence Checklist
Due diligence is vital to your risk management efforts. I hope this checklist is a valuable tool. If you have questions please feel free to contact me.
Managing your risk is crucial, and many credit unions use third-party consultants to review their insurance coverages and products. This checklist is one way to ensure your consultant is offering you the best protection options.
- Is the consultant objective--or is it also a broker, that is paid on commissions?
- What broker and/or management fees apply to the transaction?
- Are all carriers being evaluated? If not, which carriers are included in your consultant's search?
- How long has the carrier your consultant is recommending been in the bond/D&O/property/casualty business, and specifically, how long has it been serving the credit union market?
- Will your credit union have direct access to the carrier's underwriters, risk management experts, and claims specialists?
- Does the carrier focus on product development to address emerging exposures specifically for credit unions? For example, how many new coverages has it introduced in the last five year?
- Can bondability verifications be conducted online? How many credit union employees are in their database?
- How many different carriers are involved in the insurance program, and what potential gaps or overlaps exist between the various policies?
- Does the carrier have educational resources that can help your credit union prevent losses and mitigate damage after a loss occurs? Do these resources, such as online content or webinars, cost extra?
- Does the carrier work on behalf of the credit union industry to help shape, clarify, and modify new regulations?