Covered on Paper. Exposed in Practice.
94% of community bankers rate cybersecurity as their top risk. How many have actually read their cyber policy?
Source: CSBS 2025 Annual Survey
Community banks carry cyber insurance, a fidelity bond, and D&O insurance. Each policy was written for a different problem. Almost nobody reads them together. I do.
Where Coverage, Controls, and Compliance Collide
Three teams. Three priorities. They rarely sit in the same room.
Broker and Carrier
Policy language, exclusions, sublimits, warranties.
IT or CISO
MFA, EDR, patching, backups, vendor access.
Compliance and Risk Officer
FDIC, OCC, NCUA exams and 36-hour reporting.
The result: gaps that only surface during a claim, an exam, or a board review.
Three Policies, But Who Pays?
This Policy Interaction Map is from actual policy reviews. Carriers and forms vary. The pattern of who pays and who points the finger does not.
Policy Interaction Map — Sample Community Bank
| Incident | Cyber Policy | Fidelity Bond | D&O Policy |
|---|---|---|---|
| Ransomware | Covered | Extortion sublimited | Not applicable |
| Wire fraud | Sublimited ($250K) | Sublimited with conditions | |
| Vendor breach | Covered | No coverage | |
| Data breach | Covered | No coverage | Excluded except investigative costs |
| Board liability after a cyber event | Excluded | Not applicable | Cyber exclusion |
These three policies were never designed to work together, leaving unintentional gaps.
How Coverage Gaps Show Up at Claim Time
Examples from my policy reviews.
$400K wire. Spoofed email.
Cyber excludes social engineering. Bond carries a 50% co-payment.
Breach triggers three proceedings.
D&O excludes cyber-related claims. Cyber excludes board defense. Directors face personal exposure.
Policy requires MFA everywhere.
Your core vendor doesn't support it. Breach happens. Carrier rescinds coverage on warranty grounds.
What My Independent Audit Finds
The Risk Intelligence Report covers seven areas: cyber liability, fidelity bond, directors and officers (D&O), policy interaction analysis, vendor coverage alignment, regulatory response readiness, and security warranty compliance. The report serves three audiences: your board, your examiner, and your broker.
Which policy responds, which denies, and where the bank carries the loss
Exclusions, sublimits, and warranty conditions that block claims
Vendor contracts that demand coverage your policies do not deliver
Examiner-ready documentation with findings in dollar terms
When an examiner asks whether the board reviewed the insurance program, you hand them this report: findings, dollar ranges, and a remediation plan.
Joerg Proeve
Independent Risk Advisor
I spent 20+ years inside the insurance industry at carriers and insurtechs. Early career in cybersecurity. I don't sell insurance. I audit it.
More about my background →Find Out Where Your Bank's Coverage Fails
One week from documents to walkthrough. Independent. Fee-based. Examiner-ready.