INTRODUCTION
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There are various
types of coverage that are available some of which might be appropriate for a
particular client, depending on the exposures involved:
- Commercial blanket bond
- Blanket position
- Broad form inside
- Broad form outside
- Money orders and counterfeit
paper currency
- Depositors forgery (Outgoing
instruments) Including Employees
- Commercial forgery (Incoming
instruments)
- Mercantile stock burglary
- Extortion coverage
- Computer theft
- Paymaster robbery including
interest of employees
- Warehouse receipts forgery
- Credit card forgery
- Telephone fraud
- Financial Institutions bond forms
for banks, stockbrokers, insurance companies and others.
Some Crime / Fidelity risk management steps:
- checking prior history
- Audits by independent CPA that includes a review of internal controls
- Two signatures required on all checks over a nominal threshold
- Separation of duties and mandatory vacations for accounting/bookkeeping personnel
- Confirmation of statement balance by someone outside the accounts payable unit
- Stamping invoice "paid" when checks are issued
- Joint control of securities by two employees
- Regular inventory of valuable equipment and storing it in secure areas
- Computer controls including:
- Automatic prevention of repeated attempts of unauthorized access
- Exception reports generated for unauthorized sign-in or repeated access attempts
- Segregation of duties between programmers and operators
- Individuals who can authorize checks should not also be able to produce them
INSURANCE DEFINITIONS
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For definitions of various forms of insurance refer to Insurance Marketplace (Rough Notes)
INSURANCE SOURCES
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OTHER RESOURCES
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