Frequently Asked Questions
For Community Banks
Is my cyber insurance adequate?
▼Most banks cannot answer that question with confidence. Adequacy is not about limits or premiums. It is about whether the policy responds to the scenarios your institution is most likely to face, and whether your other policies (fidelity bond, D&O) fill the gaps or create new ones.
The only way to know is to test your coverage against realistic claim scenarios. That is what a Risk Intelligence Report does.
Why community banks?
▼Because of how their insurance programs are structured. Banks carry three overlapping policies, cyber, fidelity bond, and D&O, that interact in ways most brokers never examine together. I am specialized in analyzing how those three policies respond to common incidents, including wire transfer fraud, ransomware, regulatory investigations, and board liability.
Does my cyber policy cover wire fraud?
▼Sometimes, partially, with conditions. Most cyber policies treat wire fraud under a "social engineering" or "funds transfer fraud" sublimit, often $100K to $250K against a much larger aggregate limit. Many require the bank to prove a verification protocol was followed.
The fidelity bond may be invoked as the primary policy for this type of loss, but its "voluntary parting" exclusion can apply when an employee initiated the transfer. The result is two carriers pointing at each other while the bank carries the loss. More on the three-policy interaction problem →
Why do I need both a fidelity bond and cyber insurance?
▼They were written for different problems. The fidelity bond covers employee dishonesty and physical theft. The cyber policy covers digital incidents like ransomware, data breaches, and network outages.
Wire fraud and social engineering sit in the middle, and both policies have exclusions or sublimits in that overlap zone. A bank that carries both can still find that neither responds at meaningful limits when a $400,000 wire goes out the door.
Will my D&O policy protect the board after a cyber breach?
▼Probably less than you think. Most D&O policies for community banks include a cyber exclusion that excludes anything arising out of a cyber event. The intent is to push those claims to the cyber policy, but the cyber policy excludes D&O-style claims like shareholder derivative actions and individual director liability.
After a breach, directors can face personal liability with neither policy responding at meaningful limits. I read both policies together and identify the wording that creates the gap, plus any investigative cost coverage the cyber policy may carry that the board can use.
The Risk Intelligence Report
What is the Risk Intelligence Report?
▼A line-by-line analysis of your insurance policies against realistic claim scenarios. The report identifies where coverage responds, where it gets disputed, and where it fails. For banks, the centerpiece is the policy interaction analysis: how your cyber, fidelity bond, and D&O policies respond to the same incident, and where each carrier points to the other two.
The report includes specific findings, policy-language citations, and dollar-range exposure estimates. It is designed for three audiences: the board, the examiner, and the broker.
What will my examiner ask about our insurance?
▼FDIC and NCUA examiners ask whether the board has reviewed the institution's insurance program in light of actual cyber and operational risk. They look for evidence of an independent assessment, not a renewal summary from a broker.
A Risk Intelligence Report is built for that question. It includes specific findings, policy-language citations, dollar-range exposure, and a remediation plan. You can put it in front of an examiner as documented evidence that the board has reviewed coverage against the scenarios most likely to trigger a claim.
How long does it take to get a Risk Intelligence Report?
▼Typically one week once I have your documents.
You send your current policies. I review coverage against realistic claim scenarios, then deliver the report with a walkthrough call.
Do I need to switch brokers?
▼No. Most clients take the report to their current broker to renegotiate coverage at renewal, share it with their board or examiner, or use it as a baseline for year-over-year improvement.
No broker of record letter, no commitment to move your insurance. The audit is the product. What you do next is up to you.
About Breezy
Is Breezy Risk Advisors an insurance broker?
▼No. I do not sell insurance, place policies, or earn commissions. Breezy is an independent risk advisory firm. I review and audit your existing insurance program and report what I find. If you want to act on the findings, you take them to your broker, or I can help you find one. The audit is the product, not a step toward a sale.
How does an insurance audit differ from what my broker already does?
▼Your broker places insurance and earns a commission on what they sell. That is a useful service, but it is not an independent assessment.
I serve a similar function as an external auditor: independent, fee-based, no broker of record letter. I read the full policy wording, test it against specific incident scenarios, and report what I find. Most broker reviews focus on limits and premiums. I focus on the policy language that determines whether a claim gets paid.
Working Together
How much does an engagement cost?
▼Engagements are fixed-fee and project-based. A Risk Intelligence Report for a community bank typically costs less than a single penetration test or SOC 2 audit. No hourly billing, no retainer, no commitment beyond the engagement.
Contact me directly for a quote.
How do CPA firms and compliance consultants work with Breezy?
▼I work alongside CPA firms, IT auditors, and compliance consultants who already serve community banks. You refer a client who needs an independent insurance review. I deliver the report directly to the bank. The bank pays Breezy directly, so there is no conflict with your audit independence.
Get in touch to discuss a partnership.
Didn't see your question here?
Email contact@breezyins.com or use the contact form and I will get back to you.