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Banker’s Blanket Bonds

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Banker’s Blanket Bonds

A banker’s blanket bond is a fidelity bond that helps protect a bank against losses from a variety of criminal acts by employees. Some states require blanket bond coverage as a condition of operating a bank.

While fidelity bonds protect against losses occurring from employee dishonesty, a banker’s blanket bond may be applied to individual employees or to job positions in the company. For example, a bank may choose to insure a specific bank manager or the position itself.

Banker’s blanket bonds protect against an employee’s criminal acts, such as robbery and forgery, extortion and cyber fraud. In addition, losses from fraudulent activities carried out by non-employees are also covered.

The bond does not cover losses from employees who commit unethical transactions to make the financial institution itself appear healthier (aka, “cooking the books.â€)

It’s easier to measure risk and potential financial loss from fraud than losses from employee shenanigans. Therefore, deciding the necessary amount of bond coverage that a financial institution needs can present a serious challenge.

Typically, insurers analyze the number of employees and their responsibilities, employee turnover rate, the average level of exposure from daily businesses’ operations, the daily transaction average and amount of cash held by the bank.

Glenn Insurance has extensive experience in bankers blanket bond insurance and successfully services many South Jersey banks and other financial institutions.

With more than a century of experience caring about South Jersey businesses and families, our experts will be happy to serve all your bonding needs.

To learn more about our bonding services, call our bond specialists.

•           Kamini (609) 857-6616, KPatel@GlennInsurance.com.

•           Kelly (856) 777-5410, KSmuzinsky@GlennInsurance.com

For more information about Glenn Insurance bonds, click here.

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