Out of all of the industries that need high-quality insurance coverage, the financial industry is one of the most important. Losses for a financial institution don’t only impact the company itself but may also devastate the financial welfare of their clientele. When it comes to financial institution bond coverage, you want to know about banker’s blanket bonds. They are very similar to fidelity bonds, and the two terms are often used interchangeably. These types of bonds cover very specific types of situations that could result in large losses for a financial institution.
Covered for Employee Misconduct
The main purpose of banker’s blanket bonds is to protect a financial institution from losses as a result of dishonesty and professional misconduct by an employee. Unfortunately, the bigger and more successful an institution is and the more employees it has to hire, the more likely it is that there will be an untrustworthy worker. Whether the internal crime is forgery or alteration of a document or theft, it is covered under fidelity bonds.
Covered for External Risk
Fidelity bonds also provide protection from losses due to events like robbery, cyber crimes, kidnapping, extortion, counterfeiting, fraud, and more. With a good insurance provider, each financial institution can receive bonds tailored to their specific needs. Ultimately, banker’s blanket bonds are an important form of insurance for financial institutions so they can serve their clients with confidence.