ABA Insurance Services Offers Social Networking Coverage

ABA Insurance Services, the American Bankers Association-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, e-mail was the primary electronic communication tool.

Today online forums such as Facehook", Twitter1" and Linkedln" 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 tor 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," says John N. Wells, president and chief executive officer 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."

Endorsed by the ABA through its subsidiary? the Corporation for American Banking? ABA Insurance Services serves the banking industry by offering D&.0, bond and related liability insurance to community banks across the country. This banker-owned and directed insurance program has been a market leader for 25 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 profit-sharing distribution program, which has declared $75.5 million since 1991.

The Indiana Bankers Association has endorsed ABAIS since its inception. During the past 25 years, nearly $2 million has been distributed to approximately two dozen Indiana banks.

For more information, contact ABA Insurance Services at 800-274-5222 or visit www.abais.com.

[Sidebar]

What Is a PSP?

A primary responsibility of the Indiana Bankers Association is to develop and maintain products and services that will benefit the IBA membership. In discharging this responsibility, there can be benefits to entering into a Preferred Service Provider (PSP) relationship.

The PSP designation is awarded exclusively to fewer than 10 percent of IBA associate members. IBA's rigorous selection process includes a thorough due diligence review: company history, financial statement analysis, reference checks and search of business records. Criteria for PSP designation include:

* Value-added benefits available only to IBA members: cost savings and/or income enhancements;

* Business opportunity for the IBA: Each PSP contributes significant financial support to the Association through marketing fees and royalty payments.

[Author Affiliation]

PAUL W. FREEMAN

Executive Vice President-Member Services

Indiana Bankers Association

[Author Affiliation]

ABOUT THE AUTHOR

Paul W. Freeman is executive vice president-member services of the Indiana Bankers Association. He joined the IBA as director of member services in 1987, prior to which he was employed for four years with the Risk Management Association, Philadelphia, and for nine years with Bank One, Indiana, NA. Freeman is past chairman of the Indiana Council for Economic Education and past president of the Indiana Society of Association Executives, which honored him as Association Professional of the Year in 2006. A certified association executive, he has served as an instructor for the American Institute of Banking. He earned bachelor's and MBA degrees from Butler University and is a graduate of the Institutes for Organizational Management at the University of Delaware. Freeman can be reached at 317-387-9380, e-mail: pfreeman@indianabankers.org.