When it comes to handling money, especially on behalf of individuals or other parties, any operation must be sure to have the right safeguards in place. If any crime occurs which results in major financial losses, an unprotected financial institution will be responsible for the deficit. That is why blanket bonds are so important.
What Is a Blanket Bond?
Blanket bonds are insurance policies that cover instances of loss resulting from unlawful activity. This kind of coverage focuses specifically on protection against unlawful activity by employees of the institution. According to the insurance professionals at FGIB, a blanket bond is first-party coverage that doesn’t cover instances of stolen information but does protect against a plethora of other occurrences.
- Forged or altered checks, securities, money orders, bills, etc.
- Damage or loss of property on the premises, including ATMs and their contents
- Counterfeit currency
- Extortion and ransom
- Theft of property in transit
Although these situations seem extreme, they do befall financial organizations. Therefore, it is crucial for any financial operation to secure the right kind of coverage before any of these disasters have a chance to catch anyone by surprise. With a dependable and knowledgeable insurance group, financiers can be confident that they are sufficiently protected and continue their operations without fear.