Crime insurance is generally carried by all businesses. Financial institutions are usually no exception to this rule. Any firm can become the victim of a crime, be it employee theft or a full cyber breach. The range of crimes is almost limitless and it seems to get more sophisticated by the month. Considering a financial guaranty insurance policy that covers crime may be a wise move. Depending on the risks your business faces, you may want to consider which of these categories matter the most to you.
1. Wire Fraud Protection
If your company is involved in wire transfer payments of any kind, its possible that criminals could use telecommunications or information technology to steal from you by spoofing legitimate email accounts. Hacked email addresses can be used to contact other legitimate parties in order to transfer real money to criminals.
2. Mortgage Bankers Blanket Bond
If your company works with mortgage lending, this can be a great option to consider. If losses occur on a property that wasnt properly vetted or losses take the form of employee theft on the part of a closing agent, this coverage can allow compensation.
3. Kidnap, Ransom and Extortion Insurance
Because of the tremendous wealth in the financial sector, this can be a very real threat. Coverage can include an actual ransom payment and delivery. It can also be tailored to cover losses from hiring a security consultant or losses from a business interruption.
Choosing the right mix of crime insurance for your business should be worked out with an insurance professional. This mix should also be considered as part of your total financial guaranty insurance policy.