The news is rife with stories of bank hold-ups, employees skimming money off the top of funds, and lawsuits against trustees, fiduciaries, and financial advisors. For banks, credit unions, and other financial institutions, the risk exposure that results from handling customers’ money and assets is widespread. To protect their business, they need quality commercial insurance coverage. One option to shield finance businesses from liability exposure is available through financial institution bond insurance.
As an experienced business insurance agent can explain, financial institution bonds, formerly known as bankers blanket bonds, provide insurance for banks, savings and loan companies, and other financial institutions. For bank owners and directors, an independent insurance agent will mention that financial institution bond coverage can be provided on a special form drafted by an insurance company to go along with a bank’s commercial insurance policy, or through a standard form offered by the Surety Association of America. These bonds cover fraud by a bank employee, and other crimes like robbery, forgery, and burglary.
With the banking industry’s expansion into the global finance market, and new developments in technology in the past decades, financial institutions are at increased risk of harm as a result of losses or claims stemming from crimes involving employee dishonesty, theft, and computer-related misconduct. To safeguard an organization against these kinds of losses, an independent business insurance agent can discuss purchasing financial institution bond insurance with coverage for employee infidelity, damage to computers and content, and for alteration of checks and securities, or forgery. An independent agent might also suggest that a bank, loan and trust, or other financial institution buy premises risk coverage, which protects against damaged or lost property as a result of theft, insurance for counterfeit currency, electronic computer crime insurance, and insurance for cash in transit.
Privately-held and public businesses can purchase financial institution bonds to shield their company from various risk exposures. A seasoned independent business insurance agent will review a bank or trust company’s concerns about topics like securing automated device coverage for money lost due to ATM burglary, insurance for defective signatures on deeds, mortgages, or assignments, and coverage for losses resulting from fraudulent or unauthorized voice initiated transfers of funds. She may also mention that some insurance companies offer insurance for lost funds resulting from fraudulent fax transmissions, cash letter coverage for extra costs resulting from destruction, misplacement, or theft of a cash letter, and coverage for defense costs in case of a lawsuit against a financial institution concerning a loss covered under a bond.
Through a local independent insurance agent, banks, credit unions, and loan and trust companies can receive comprehensive information about financial institution bonds before they purchase a new commercial insurance policy, or supplement their existing coverage. Buying financial institution bond insurance through an independent business insurance agent means that, in the event of a crime, banks know that they have taken the right steps toward mitigating their losses.
The agent may ask about lending limits and security on premises and off. The agent will also want to know about any previous bond losses.
While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.