Bankers’ Blanket Bonds indemnify a bank against fraudulent activities performed by employees as well as theft or burglary perpetrated by non-employees. This bond consists of different sections which are known as insuring clauses, each detailing a clearly defined risk and can contain all of the clauses adjacent or just those that are relevant.

It will be necessary to establish the risks that the bank is subject to in order that the most appropriate bond can be tailored to the specific needs that have been identified.

An underwriter providing coverage for Bankers’ Blanket Bonds would be able to provide the following sector types:

• Infidelity of employees – this covers the loss of property resulting from the fraudulent or dishonest act of one or more employees attempting to obtain financial gain
• Premises risk – this covers the loss of property from theft, damage, misplacement, destruction or unexplainable disappearance from the premises

• Transit – this covers loss or damage to property whilst in transit and in the custody of an employee or security company
• Forged or altered cheques – this covers loss due to the forgery or fraudulent alteration of cheques or any other financial instruments
• Forged securities – this covers the loss that the organisation has sustained due to having acted in good faith upon other types of securities or documents that are proven to be counterfeited, forged, fraudulently altered or stolen. This applies to those that are not covered under the forged cheques clause above
• Counterfeit currency – this covers the loss sustained from the acceptance in good faith of counterfeit notes and coins at the premises
• Damage to offices and contents – this covers loss or damage to the office and contents of the organisation including furniture, fittings and equipment occurring from burglary, theft, holdup, vandalism and other criminal acts. This excludes electronic computer equipment.
• Legal fees – this covers all reasonable legal fees, costs and expenses incurred and paid by the company in the defence of a demand, claim or legal proceeding, only if it is established that the acts committed entitled them to recover under such policy.