Banker's indemnity insurance
A package policy for banks and financial institutions, covering money and securities in their custody or in transit, employee infidelity, forgery, and the other losses particular to banking.
What it covers
Cover varies between insurers and plans. The policy wording is what decides whether a claim is payable, so read it before you buy.
- Loss of cash, currency notes and securities on the bank's premises
- Loss in transit while money is in the hands of authorised employees
- Infidelity or dishonesty of employees
- Forged or fraudulently altered cheques, drafts and other documents
- Loss of hypothecated goods, where that section is insured
- Damage to premises, safes and strong rooms caused by theft or attempted theft
Key features
- A package of sections; the institution chooses which to take and the limit for each
- Covers both on-premises and in-transit risk, which a plain money policy splits
- Employee infidelity cover written for banking roles
- Conditions about safes, strong rooms, dual custody and cash-carrying practice
- Limits per loss and in the aggregate, against a schedule of branches
- A compulsory excess applies to most sections: [DEDUCTIBLE]
How to buy it
Four steps, with an advisor you can reach at any of them.
Tell us about the risk
Tell us about your branch network, cash holdings and transit patterns, your existing controls, and your claims history.
Underwriting details
An advisor collects the information insurers need to price the risk, and flags anything missing.
Compare quotes
We ask our partner insurers to quote, and put the cover, conditions and premium side by side.
Proposal & policy
Pick a quote, complete the proposal form and KYC, and the insurer issues the policy.
Banker's indemnity insurance: FAQs
Is cyber fraud covered?
Generally not by this policy. Electronic and cyber losses, including customer account takeover, are covered by a cyber or electronic crime policy arranged alongside it.
Does it cover cash carried by an outside agency?
In-transit cover applies to money in the hands of authorised employees. Cash handled by a contracted agency usually needs that agency's own cover, or a specific extension.
What controls does the insurer expect?
Safe and strong-room standards, dual custody, limits on how much cash one person carries, and sound reconciliation. Underwriters look at controls as much as at claims history.
Can a co-operative bank buy it?
Yes. Co-operative banks, credit societies and NBFCs are regularly insured under this policy, with the sections and limits set to the size of the operation.