Every financial institution is vulnerable to crimes from both internal and external sources. Sometimes these illegal acts lead to a monetary loss for your company, your clients or both. In the event of successful criminal activity at your financial institution, having the right insurance can keep your business running smoothly.
The Cost of Criminal Activity
A successful criminal incident such as computer security breach or employee theft can do irreparable damage to your company. In addition to the dollar amount of what the criminals stole, your company may suffer a decline in business due to a loss of credibility and a destroyed reputation. There may be lawsuits involved that can drain your company of its funds and there could be expenses associated with locating or prosecuting the offender. Without proper financial institution insurance, your company could face bankruptcy.
Losses That Insurance Covers
There are such a variety of crimes to protect against that you need to make sure your insurance covers you in situations like:
- Employee theft and dishonesty
- Computer and funds transfer fraud
- Forgery and alteration
- Kidnap and ransom
Other money and securities frauds exist, and you may need additional coverage depending on your type of company.
The main part of your job as a financial institution is to serve and protect your clients, their money, and their investments. By safeguarding your company with the right insurance, you will be properly equipped to be the type of establishment that clients trust and want to do business with.