Bank Bond – In Transit Insurance

This one for my bank clients & friends…

The bank bond purchased by most American banks includes coverage to loss of money (and other property) “in Transit.”  The coverage is also called section C in many bonds.

The protection is for money being (oh surprise) transported.

Coverage is limited to money transported by employees and by a contracted armored car company.  If you have a courier transporting money from branch to branch or from customer to branch you only have coverage if the courier is an employee.

Contracted transit companies are only covered if they are using an armored car.

Contract with a local taxi company?  No coverage.

Contract with a friend down the street?  No coverage.

Contract with a local courier company?  No coverage.

Of course, the courier company might have insurance.  Your bank does not though.