Protect Your Financial Institution Against Dishonest and Fraudulent Employees

Financial institutions carry a lot of risk. While a lot of institutions focus heavily on external risk, it is critical to monitor and protect against internal threats. No one wants to think that employees may compromise the institution, steal or commit fraud in the company’s name. Unfortunately, employees can also become a risk that the institution needs to prepare for. Financial institutions can invest in financial institution bond coverage.

The Importance of Financial Institution Bonds

A financial institution bond is a type of business insurance that protects a company by covering losses associated with:

  • Embezzlement
  • Fraudulent trading
  • Forgery
  • Theft

When an employee acts dishonestly for personal gain, he or she can harm the financial institution. The bank, finance company or any other financial business could face devastating losses or damage to their reputation.

Most Common Financial Bond Claims

Given that all financial institutions have a digital presence, one of the most common claims is due to fraud via fund transfers. Institutions need to be diligent in protection outside of financial bond insurance too. For instance, if a company does not follow protocol, a claim may be denied.

Internal threats should always be a consideration for financial institutions. Without insurance coverage, the effects of theft, fraud or embezzlement can devastate a company.

The Secret Behind Financial Bond Insurance and How It Can Protect You

Protecting your assets is a hard lesson many Americans learned during the last financial crises. As times get tough once again, many financial institutions are getting pressure from clients as they acknowledge they are constantly being bombarded by a wide range of potentially damaging exposures. Banks, credit unions, internet and investment banks, brokerage firms, and savings and loan associations all look to financial institution bond coverage for protection. Here are some ways that financial bonds can provide coverage.

The Bankers Blanket Bonds

Once known as the banker’s blanket bond, the financial bond is prepared by an insurer under which coverage can contain illegal employee acts including

Burglary
Forgery
Theft
Robbery
Intentional dishonesty

This business insurance protects you and your company from finance-related and on the job problems associated with your employees.

The Risks Have Expanded

While times have changed, the threats and risks to financial institutions have also transformed. No longer is it a simple case of watching your employees to protect yourself. Financial institution bond coverage can now also cover

Kidnapping
Computer fraud
Extortion
Counterfeiting

Protect your balance sheet with a financial institution bond. No matter how large or small your business is, a financial bond can protect you from threats by employees from inside and outside your institution. Check with your insurance provider today to see what programs they can design for your business.