Insurance for Fraud-Based Losses and Liabilities: What Banks Need to Know to Identify and Secure Coverage
Banks are routinely subject to losses and claims arising out of various types of fraudulent activities, with cyber-related fraud on the rise. These range from Ponzi schemes being run through banks, employee participation in fraudulent schemes, phishing and other social engineering fraud, and electronic privacy breaches, among others.
Fortunately, there are insurance products available to protect banks against these events. But banks need to understand what these products cover and how they function, and how to protect their ability to recover when a loss or claim comes in.
This presentation will begin by discussing the types of insurance products that may apply to fraud-based losses and claims—including bankers professional liability policies, financial institution bonds, and cyber policies—and what coverages they generally provide. It will then delve into which coverages are likely to be triggered by different types of fraudulent activities and will try to dispel misconceptions about whether coverage may exist. Finally, it will provide best practices in responding to a loss or a claim to ensure that the bank protects its ability to recover. The segment will close with a question-and-answer session.
David A. Thomas
Blank Rome LLP