WASHINGTON - The American Bankers Association is offering an insurance package for community banks that offer online banking.

The Internet Banking Protection Package includes an Internet banking liability policy and an enhanced version of the existing financial institutional bond. It also offers optional riders for business interruption, public relations expenses, and cyber/network extortion coverage.

The program is intended to fill gaps in banks' traditional insurance coverage in areas including the financial institution bond, directors and officers liability, entity errors and omissions, commercial general liability, business income, extra expense coverage, and e-insurance policies.

"After extensive research, it became apparent that the insurance industry hadn't kept pace with technology and traditional policies didn't adequately cover losses resulting from Internet banking," said Gina Juhnke, a product manager at Progressive Corp. in Mayfield Heights, Ohio, which underwrites the program.

Though many insurance companies have identified these gaps in coverage, they have not taken measures to cover what is relevant to banks, Ms. Juhnke said. "The e-insurance policies out there today are designed for e-commerce businesses, which is precisely why we have created our product - to address the specific needs of financial institutions."

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