Think about the fact that banks possess a lot of material items (cash, jewelry, gems) belonging to others and kept in their institutions for safekeeping. They also have access to a lot of personal and confidential information. While bank robberies still do occur from time to time, the more significant concerns have to do with technology (cyber theft), and dishonesty in the workplace.
That is certainly a lot of issues to address and a lot of risks and exposures to deal with on a daily basis. Insurance for Banks is the coverage that addresses all of these issues and more, from ATM machine theft and burglary, to forgery, fraudulent mortgage schemes, debit card fraud, and much more. There are so many areas to address, but well focus on just a couple of the primary issues here.
Debit card coverage
We now live in the age where cash is king is no longer a prevailing theme among consumers. We now live in the plastic age where the majority of purchases are made using credit and debit cards. Debit card coverage provides coverage for losses resulting directly from the fraudulent use of a debit card to obtain cash or pay for products or services by gaining access to an electronic payment device. This is provided that such a device, as part of the transaction, electronically verifies the customers available funds in the customers account at the insureds bank.
Destruction of Data or Programs by Hacker
Cyber crimes are a great concern for the banking industry here in the US and institutions worldwide. All banks are urged to carry a policy designed to cover any losses resulting directly from the malicious destruction of, or damage to, computer programs owned by the bank, or for which the bank is legally liable. This includes all confidential info stored within their computer systems.
Protection is usually included for the cost of duplicating damaged or destroyed data or computer programs from backup sources. If the computer programs cannot be duplicated from a backup, the insurance company will pay the additional costs to restore damaged or destroyed data.
Again, there are a lot of ways to infiltrate the banking industry through illegal means in order to gain access to funds or valuable information. While safety is a priority, attacks will occur and losses will be the result. Insurance for Banks is just one line of defense against the many crimes banks must endure in an attempt to keep their customers feeling secure.