Chubb Better With Dishonest Employees

I’ve complained often about the financial institution bond exclusion for “dishonest employees.”

Here is the clause on a Chubb policy I am currently reviewing for a bank client:

This Bond terminates as to any Employee:
F. immediately on the ASSURED, or any of its directors, trustees or officers not acting in collusion with such Employee, learning of any dishonest act committed by such Employee at any time, whether in the employment of the ASSURED or otherwise, whether or not such act is of the type covered under this Bond, and whether against the ASSURED or any other person or entity, or

G. fifteen (15) days after the receipt by the ASSURED of a written notice from the COMPANY of its decision to terminate this Bond as to any Employee.
Termination as to any Employee shall not apply if the dishonest act occurred prior (continued) to employment with the ASSURED and involved less than Ten Thousand Dollars ($10,000.).
Most bank bonds exclude any employee known to have committed any dishonest act – ever.
One client pointed out that any employee could be voided for coverage if they are merely asked, “Have you ever lied?”
A yes means that you have committed a dishonest act.
A no means you are lying right now.
Well done Chubb – not perfect but better than your peers.