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.

Extend Protection to Contractors through Builders Risk Insurance

Every contractor knows the risks involved in a construction project. Hail could damage construction equipment. Vandalism can destroy the property. A rogue fire could cause a project to shut down for weeks. With all of the potential liabilities associated with a construction project, it is important for contractors to have builders risk insurance for protection.

What Does Builders Risk Include?

Coverage extends to a wide number of areas, including:

  • Theft and vandalism
  • Lightening
  • Fire
  • Accidents involving vehicles

Not every risk is covered with this particular type of insurance. For example, flooding and earthquakes are usually excluded. It is also important for contractors to take with an insurance agency before acquiring builders risk insurance to determine the full extent of coverage.

Asking for an Extension 

Depending on the situation, it is possible for contractors to ask for an extension on coverage. This is applicable when a project is shut down after an accident occurs or when construction is halted due to damaged property or equipment. No two incidents are the same, so contractors should work with their insurance agent to determine how builders risk insurance can best work for them. There is no way to avoid the various risks involved with construction, but protection is available through the coverage provided by builder’s risk.