Travelers launches new financial institutions bond for asset managers
US property/casualty insurer Travelers Companies has launched a new financial institutions bond designed specifically for asset managers.
The product will help protect asset managers against financial loss caused by employee theft or third-party criminal activity and also includes coverage for social engineering fraud, a scheme where an employee is deceived into transferring funds to an illegitimate account.
Pending state approval, the new bond is available starting January 1, 2024, for new customers and April 1, 2024, for existing customers up for renewal.
The current bond provides insurance protection to asset firms and professionals for a variety of financial losses, including theft, forgery and specified fraudulent account activity. The new version from Travelers builds nearly 30 endorsements into the standard form and expands the definition of who is an employee, as well as who is an insured, so that it will now include subsidiaries, private funds and special purpose investment vehicles.
Travelers said the new bond is easier to read and doesn’t require verification for fraudulent instruction coverage, and offers more days to policyholders when they are required to report claim activity.
Tracey Santor, assistant vice president and financial institution bond product manager at Travelers, said: “We know asset managers play a pivotal role in the financial ecosystem, and this new best-in-class bond is tailored to meet their unique needs. We’ve taken the original bond, expanded the coverage, and simplified and streamlined the parts that don’t pertain to asset managers. It’s a significant improvement that will make things easier for asset managers, as well as the agents and brokers who work with them to secure appropriate coverage.”
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