Financial Institution Bonds
Despite rigorous controls, many securities firms are challenged to stay a step ahead of fraud and embezzlement schemes that are often perpetrated by their own employees. Misappropriation of funds, Ponzi and other investment schemes, counterfeiting and skimming – all are exposures faced by securities firms and their customers.
Travelers Canada Financial Institution Bond, Form14 protects against loss from an employee’s dishonest acts, including larceny, embezzlement, theft, forgery, counterfeit and other schemes, whether committed independently or in collusion with third parties.
Also known as a banker’s blanket bond, a financial institution bond safeguards customers from embezzlement of their funds while protecting a firm’s balance sheet, assets and investments. While Canadian Securities administrators require the purchase of blanket bond coverage in order to be licensed to operate as a stockbroker, securities dealer, and in other financial advisory roles, not all blanket bond protection policies are created equal.
Travelers Canada Financial Institution insurance policies are accompanied by risk management expertise that can help you prepare when even the most rigorous internal controls and practices are not enough to prevent a trusted employee from engaging in dishonest acts.
Who is this right for?
- Employee dishonesty against the firm and its clients
- Coverage for destruction and theft of money and securities inside and outside the firm’s premises, as well as at its banking premises
- Coverage for forged firm cheques, and acceptance of forged security documents and counterfeit currency
- Computer fraud and funds-transfer fraud by third parties hacking into the firm's system
- Worldwide territory
- The option of a “per loss” form with a limit of liability that is fully reinstated after a loss, so the limit will not erode as it would under an aggregate form
- Availability of audit expense coverage, which provides coverage for audits or examinations required for proof of loss from dishonesty, fraud, larceny or embezzlement committed by an employee
- Coverage for additional Canadian offices established by the firm