Specialty fidelity & crime

Fidelity policies cover dishonesty from employees, and Crime policies extend this to dishonesty in the workplace committed by third parties in a variety of ways (depending on the specific coverage extensions).  Exposures vary significantly between types of organizations, and some exposures are significantly more difficult to cover than others. 

Investment Related Classes

Investment related bond coverage is a specialty segment for Tennant Risk Services. Protection is available from specialty markets for expanded coverage including computer theft, forgery or alteration of checks and other instruments that are drawn by an investment or fund manager, and theft, disappearance and destruction of money and securities.  In addition, computer theft and fraud is a coverage extension getting significant attention.

Note that a fidelity or crime bond is different from an ERISA bond. An EIRSA bond is structured to meet the specific ERISA guidelines and is required of any entity involved with ERISA plans, including investment advisors managing ERISA funds (such as assets in a 401k plans, for example). Under Section 412(a) of the Employee Retirement Income Security Act of 1974 (ERISA) an ERISA Bond is required of every fiduciary. The amount of the bond must be equal 10% of the amount of the funds handled by the fiduciary for each plan up to a maximum of $500,000 per plan. See our ERISA bond page for more information.

Exposure

Although not well publicized, employee dishonesty and third party financial theft claims do occur. The frequency and severity of claims vary significantly by class of business, so coverage is important.  This drives variation in limits and deductibles based on the size and type of insured. Standard limits for most small to medium sized organizations start at $250,000 and range upwards, particularly for investment-related organizations. Policy forms can vary as well. Pricing is reasonable relative to other insurance coverages, but is not free!

Account Examples:

Gasoline wholesale and retail distributor required coverage for client assets in care, custody and control, including loss of inventory.  Limit $ 1.0 million, deductible $10,000, premium $4,500.

Wholesale sales of tax-related financial products including worldwide coverage.  Limit $ 500,000, deductible $25, 000, premium $7,500.

Claim: $350,000 embezzlement by manager.  Limit $ 1.0 million, deductible $15, 000, premium $6,000.

What do we need?  A thorough submission is necessary to get the job done.  In addition to the application, the submission should include a clear description of the activities and five years of loss history.  A brief conversation with a Tennant broker will help to start the process. 

Tennant Risk Services provides fidelity & crime coverage for a wide range of professional organizations. Please let us know your client's needs and we will provide you with information and assistance with your particular situation or account, and professional liability coverage.  Our goal is to provide the best combination of product, price and service to you.  We will handle your accounts knowledgeably and efficiently, in turn saving you valuable time and money.  Please let us know if we can be helpful in any way by contacting us.

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Tennant Risk Services
124 LaSalle Road
West Hartford, CT 06107
Phone: (860) 519-1301
Fax: (860) 216-5845
E-Mail: info@tennant.com

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