PUBLISHED ON: December 20, 2010
According to a recent survey of 3,037 companies, “905 (30%) reported having experienced at least one incident of fraud in the last 12 months alone.” The Global Economic Crime Survey, PricewaterhouseCoopers (Nov. 2009). Moreover, in light of the economic downturn, reports show that incidents of fraud are on the rise. Kroll Global Fraud Report (Sept. 15, 2008); Treasury & Risk Management at 10 (Mar. 2009). Given all the “tangled webs” being spun to deceive, insurance that covers theft and fraud is worthy of focus. Financial institutions and commercial policyholders should understand the types of insurance coverage they have in place and the steps they should take to maximize insurance coverage under a financial institutions bond or commercial crime policy.
If a financial institution or other policyholder experiences theft or fraud loss, insurance may well be available to cover the loss. Standard financial institution bonds and commercial crime insurance policies provide various types of insurance for fraud or theft. These policies are designed to reimburse policyholders for direct losses suffered as a result of an employee’s dishonest conduct and other covered perils.