Blanket bond insurance protects investment houses, banks and other financial companies. This type of coverage shields against losses incurred by dishonest or unlawful activity. Unlike other types of insurance, this form covers loss caused by illicit activities within the company. Here are the facts you need to know about blanket bond.
What Is a Blanket Bond?
So, you know that blanket bond insurance provides financial institutions against loss sustained due to criminal activity. There is still more to know about the types of coverages offered. Here are some of the coverages involved in blanket bond insurance:
- Forged Check coverage
- Forgery of security coverage
- Dishonesty coverage
- Damage to property coverage
- Theft and destruction during transport coverage
- Counterfeit currency coverage
- Damage by third parties coverage
While this includes some of the more common coverages, it’s important to discuss the extent of coverage with your provider.
Do You Need Blanket Bond Insurance?
The truth is that anyone that works in financial services should probably consider blanket bonds. This is especially good for those that provide financial services to a third party. For instance, investment funds, investment managers and financial institutions should consider it.