Cost of Coverage

The Cost of Coverage

The cost of Excess Share Insurance has two components; one fixed and one variable.

1% Deposit Requirement

In order to effectuate approved coverage, your credit union must fund an at-risk deposit in the amount of one percent (1.00%) of the maximum limits of liability under the policy. For example, if your credit union is approved for a maximum policy limit of liability of $10 million, then your credit union must submit a deposit of $100,000 to ESI in order for the policy to be issued and effective.

Premiums Tied to Actual Coverage Needs

Your credit union must also pay quarterly premiums for the actual coverage needs reported. A monthly premium rate is determined during the underwriting process and is updated periodically as changes to the credit union’s rating occur. The premium rate is based on a rating published by the Kroll Bond Rating Agency, Inc., a nationally recognized rating system for financial institutions.  Premiums are paid only to the extent of coverage in effect and reported, and not the maximum limits of liability.

Reporting, Monitoring and Examination

Quarterly Coverage Reporting  
On a quarterly basis, your credit union must submit a report detailing the credit union’s member accounts subject to ESI’s coverage and the balance in such accounts.

Quarterly Financial Statements and Quarterly Monitoring  
Your credit union is also required to submit quarterly financial statements. This information is critical to your continued insurability. In some cases, ESI may elect to require financial statements more frequently than on a quarterly basis.

On-site Field Examinations
Quarterly financial statements and other information is used to determine the need for an on-site visit to policy-holding credit unions.  The company's Examination and Insurance Department's staff conducts these examinations on a recurring basis.

Contact Us

Interested in learning more about Excess Share Insurance? Contact us at   A copy of our specimen policy is available by calling 800-521-6342.



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How to Apply
Cost of Coverage
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Why Offer Excess Share Insurance

  • Accommodate larger deposits
  • Generate liquidity
  • Help grow your share base
  • Credit union exclusive product
  • Give your members extra peace of mind