Lately, some of my shareholders who are looking to refinance and at least one new purchaser have approached the board with requests to increase insurance coverage limits. What I don't understand is, the increased coverage amounts are minuscule. For example, one ReFi requested an increase in Fidelity Bond (theft and embezzlement) from $435K to $450K. Another was for a D&O increase for some similar small amount.

Has anyone on here been hit with these kinds of requests? If so, how did you handle them with your shareholders, and also with the offending.... errrr... requesting banks? If you said or did something that worked and caused the bank to forego their increase request, please post it on here so the rest of us can benefit.

Thanks!
--- Steve