Crime loss exposures for financial institutions are primarily covered by which type of policy?

Financial Institution Bonds provide tailored coverage for crime loss exposures specific to financial institutions. These bonds are designed to protect against various types of loss, including employee dishonesty, forgery, and theft of money and securities, which are critical risks for banks and other financial entities.

Unlike standard liability insurance, which primarily addresses third-party claims and bodily injury, and general property insurance, which covers physical assets rather than specialized crime risks, Financial Institution Bonds fill a unique gap. Business interruption coverage is also distinctly different, as it focuses on loss of income due to operations being disrupted, not specifically addressing crime losses.

The specialized nature of Financial Institution Bonds is essential for financial institutions given their increased exposure to financial crimes.