Bankers Bond – Employee Cancellation

I work with a great many banks, helping them buy and manage insurance.

Today I reviewed a new policy for a client.  It’s a policy from a new bank insurer, FinSecure.

I have long railed about the cancellation provision in all bonds that ends a bank’s insurance coverage when a bank officer learns of a past dishonest act of an employee.

So, ABC Bank’s CFO is having lunch with a 45 year old teller who has won employee of the month.  During the conversation, the employee reveals that at 15 he stole a fishing lure from a sporting goods store.

At that moment, coverage for dishonest acts by that employee stops.  If, a month later, it is found that the teller has stolen from the bank, coverage will be excluded.

FinSecure is a new insurer, part of the Berkley Group.  Their bond limits the exclusion to dishonest acts prior to employment, not related to their employment, where the amount in question is less than $2,500.

Bravo FinSecure!

Other insurance companies take notice.