FOR IMMEDIATE RELEASE
May 4, 2011
ABA Media Contact: John Hall
Follow us on Twitter @ABABankingNews
New Addition to Internet Liability Policy
The American Bankers Association is pleased to announce that ABA Insurance Services, the ABA-endorsed program providing liability insurance for community banks, is now offering social networking coverage as part of its Internet liability policies.
When Internet liability policies were introduced in the late 1990s, email was the primary electronic communication tool at the time. Now, online forums such as Facebook, Twitter and LinkedIn have exploded onto the scene, becoming key components of advertising and communication efforts for many banks. Yet not all Internet policies address the newly emerging exposures associated with social media and other forms of social networking.
To address this gap in insurance coverage, ABA Insurance Services is including the Social Networking Endorsement at no additional charge to the program's Internet Banking Liability policy.
The new coverage addresses claims made by or on behalf of customers or regulatory agencies. It also includes coverage for regulatory correction expenses.
"We are pleased to provide this new coverage enhancement to address the potential losses that banks may face due to the increased usage of social media," according to John N. Wells, president and CEO of ABA Insurance Services. "It is an example of how we identify developing exposures and take action to best serve the insurance needs of community banks."
"As technology continues to advance at an increasingly rapid pace, we're pleased to make this innovative coverage available through the program's Internet Banking Liability policy," said John C. Wolff, president of the Corporation for American Banking, an ABA subsidiary. "This enhancement demonstrates ABA Insurance Services' industry expertise and ability to keep pace with the critical changes our members are facing."
To learn more, contact ABA Insurance Services at 1-800-274-5222 or visit www.abais.com.
About ABA Insurance Services
Endorsed by the American Bankers Association through its subsidiary—the Corporation for American Banking—ABA Insurance Services serves the banking industry by offering D&O, bond and related liability insurance to community banks across the country. Our unique banker owned and directed insurance program has been a market leader for twenty-five years and is recognized by insurance and banking professionals as a secure, stable and affordable source of coverage. Banks which are insured by ABA Insurance Services and are ABA members participate in a unique profit-sharing distribution program, which has declared $75.5 million since 1991. For more information, visit www.abais.com.
About American Bankers Association
The American Bankers Association represents banks of all sizes and charters and is the voice for the nation's $13 trillion banking industry and its 2 million employees. The majority of ABA's members are banks with less than $165 million in assets. Learn more at www.aba.com.
About Corporation for American Banking
The Corporation for American Banking (CAB) is a subsidiary of the American Bankers Association that endorses bank solutions on behalf of the Association, helping banks save money, make money, and operate more efficiently. Solutions range from mission-critical insurance, compliance and risk management programs to services that help banks stay competitive and efficient through technology and business growth platforms. More than 6,000 banks use at least one ABA-endorsed CAB program. These programs are also supported by State Bankers Associations through co-endorsement relationships. Visit www.aba.com/cab.
# # #