Due Diligence and Ongoing Monitoring

Question for bank TPRM - Do you require all Third Parties to have COIs issued with additional insured listed as the bank?

Not all vendors are going to agree to that, and that would not be something that would really even make sense to ask for every vendor. What risk would you be trying to cover, and for what type of insurance? 

So is your question: Does your bank need to have its third-party vendors list the bank as an additional insured on the vendor's COI?  If so, it would be nearly impossible for your vendor to get that done.  An insurance carrier would not take on the risk of adding the 'bank' as an additional insured, as the carrier would then have to insure all the risks that a bank carries with it...too much risk.  What I do recommend is that your bank require that all of its' vendors be required to add your bank as a Certificate Holder on the COI.  This will ensure that your bank is notified in the event that the insured cancels any of the policies listed within the COI before the stated expiration date.  This is very important in that it is not unheard of that a vendor will get the required coverage in place, only to cancel the policy once the contract is signed and get a refund of any monies paid.  I previously owned an insurance agency, and the insurance carrier would not approve adding another company as an additional insured; however, the carrier would always add a certificate holder.  I can also tell you from experience that I had more commercial clients than I would like to recall, that would place coverage and once the contract was executed, they would contact me to cancel the coverage.  Their client was none the wiser (because they were not listed as a certificate holder and thereby received no notification that the policy was cancelled), and the insured saved money by not having to pay the annual premium and/or getting a refund of premiums paid.