Secure Your Bank with a Bankers’ Blanket Bond!
Bankers’ Blanket Bond (BBB) is a type of insurance that provides financial protection to banks and other financial institutions. It covers certain types of losses related to theft, fraud, forgery, alterations, computer fraud and electronic data theft, money order losses, counterfeit currency losses and funds transfer frauds. A BBB allows a bank or other financial institution to recoup its lost funds due to any of these occurrences.
Theft & Embezzlement
A Bankers’ Blanket Bond can cover the amount stolen or embezzled by an employee or another person connected with the business. Generally, these policies are designed to protect the bank from up to a specific limit per occurrence and in total number of occurrences during the policy period.
Forgery & Alteration
A Bankers’ Blanket Bond may also provide coverage for losses resulting from forged or altered documents such as checks and certificates of deposit. In such cases it is important for banks and businesses to have procedures in place for verifying signatures on documents used in banking transactions.
Computer Fraud & Electronic Data Theft
Bankers’ Blanket Bonds will also typically include coverage for computer fraud losses and electronic data theft loss sustained as a result of unauthorized access to company information stored electronically. This includes any printed copy or output resulting from taking advantage of such access.
Money Order & Counterfeit Currency Losses
Bankers’ Blanket Bonds can also provide coverage against counterfeit currency losses as well as money order losses due to unauthorized use of the bank’s own money orders or those sold by third parties. Banks must use sound internal control procedures when issuing money orders to detect irregularities before they reach customers’ accounts.
Funds Transfer Frauds
Finally, Bankers’ Blanket Bonds can also provide protection against fraudulent funds transfers resulting from banks receiving false instructions via phone, fax or email from someone posing as an authorized customer replying on behalf of a legitimate account holder requesting a payment be made out from them. Banks should confirm all such requests with their customers prior to executing any transfers from their accounts regardless if requested internally or externally on their behalf.
In conclusion, Bankers’ Blanket Bonds are designed for protecting banks and other financial institutions against a wide range of exposures involving employee dishonesty; forgery; alteration; computer fraud; electronic data theft; money order/counterfeit currency losses; and fraudulent funds transfers among others making them an essential tool for small businesses that rely heavily on banking services at many locations within their organization need it most.