All-inclusive bank insurance - Bankers Blanket Bond is a basis of insurance of banks upon criminal acts.
Types of the insurance coverage offered Bankers Blanket Bond were directed to compensation of losses from plunders and fraud concerning the property which is on preserving.
The insured risk factors at all-inclusive bank insurance:
- disloyalty, abuses of bank staff (use of false documents, etc.);
- plunders of securities from storage of bank;
- electronic and computer crimes;
- professional responsibility of employees of the bank;
To Bankers Blanket Bond the accompanying insurance policies providing a covering of losses of the banks suffered as a result of introduction of the fraudulent commands or programs to a computer system, to an electronic money transfer system or to the communication system of bank and also providing a covering of losses of the banks suffered as a result of defeat of its computer system by a virus or when money was transferred by bank according to the fraudulent order received on means of telephone or fax connection were developed.
Initially the insurance coverage of computer crimes was developed in the form of the separate policy according to which the cumulative limit of a covering and an insurance premium was separately set.
However when this insurance product began to be considered as a component of the comprehensive program on fight against crime, the covering limit of insurance of computer crimes became a component of the limit of a covering set on Bankers Blanket Bond, the insurance premium according to the policy of computer crimes began to be calculated on the basis of quotations for Bankers Blanket Bond.
The policy of assurance of computer crimes and Bankers Blanket Bond is issued by one insurer.
Otherwise, in case the insurer suffers a heavy loss which gets under a covering and on Bankers Blanket Bond and according to the policy of assurance of computer crimes, there can be serious disputes between insurers concerning compensation payment.