16 Hoosier Banker February 2015 At present, ALTA Best Practice No. 6 only requires a surety bond if it is required by the title underwriter or the prevailing laws of the jurisdiction. Consult the title underwriter and licensing authority for the requirements in this regard. Cyberfraud and cybertheft insurance. Cyberfraud and cybertheft insurance is currently not required by the ATLA Best Practice No. 6. We cannot, however, have a complete conversation about insurance without mentioning this growing area of the insurance marketplace. Twenty years ago, when assessing the risk for theft from our entrusted funds in the trust accounts, we looked to our employees, our partners and our clients. Today we have to consider threats that did not exist last week, let alone 20 years ago. The advent of online banking has provided crooks in a foreign land an avenue to potentially rob our trust account. This is a new threat that has to be examined carefully to make sure that the trust that has been placed in us is warranted. The next time we sit down at the computer to perform an online banking function, consider that a criminal halfway around the world could potentially do anything online that we can do. Compare this type of coverage to the coverage offered by a fidelity bond, and consider that the opportunity to interview an employee exists before he or she sits at a computer with access to online banking. In both instances, a professional may be the victim of theft due to the malfeasance of another. Purchasing cyberfraud and cybertheft insurance is not a substitute for appropriate risk management measures regarding online banking; it is a complement to those efforts. Conclusion There are many types of insurance available to protect ourselves and our clients. Ultimately the different forms of insurance are not a substitute for professional policies, procedures and practices. Title insurance is not a substitute for a complete and thorough title examination. Errors and omissions insurance is not a substitute for adhering to standards of professionalism. Fidelity insurance is not a substitute for a background check and interview of potential employees. Cyberfraud and cybertheft insurance is not a substitute for a firewall and virus protection software to protect online communications. Try as we might to guard against all of the risks present in our everyday professional responsibilities, “stuff happens.” The insurance that we purchase – some required by our title underwriter and some required by state law – is merely a safety net, so that we can continue another day to provide professional real estate services to another client. t Learn step by step how to build your bank’s image with Amplify, a grassroots communications program. To view a brief explanatory video, go to Hoosier Banker Digital indianabankers.org, and click on the red arrow. Give Banking a Stronger Voice Video Bonus: Gary Michael Monnett, 55, chief financial officer, vice president and board member of Our Community Bank, Spencer, died Jan. 7. He became a certified public accountant in Elkhart before opening an accounting firm in Cloverdale. Monnett joined the bank in 2000. He attended DePauw University. t In MeMory of Continued from page 15.
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