A securities broker/dealer fidelity bond is an SEC/Financial Industry Regulatory Authority compliance coverage requirement that insures your firm against intentional fraudulent and dishonest acts committed by your employees and registered representatives under certain specified circumstances. In cases of theft of customer funds, a fidelity bond generally will indemnify your firm for covered losses sustained in the handling of customers' accounts.
The Securities Broker/Dealer Fidelity Bonds Self-rating Program, underwritten by The Travelers, is offered exclusively through Liftman Insurance.
Key Features of the Program:
- The Securities Broker/Dealer Fidelity Bond Self-rating Program, underwritten by The Travelers (rated A+ in Best's as of May 26th, 2011), is offered exclusively through Liftman Insurance.
- SAVE $$ – New rates and deductible options for lower premiums
- Non-aggregate bond – coverage is for each and every loss subject to bond terms
- Discovery basis bond with up to one year discovery period available
- Legal expense coverage provided in addition to the bond limit of liability (subject to a cap of 100% of the bond limit)
- $25,000 audit expense and $5,000 fidelity claims expense coverage
- Reasonable deductibles based upon the bond limit purchased
- Coverage for unauthorized signatures of non-employees up to $25,000 per loss and in the aggregate per year
- Credit/debit card forgery coverage
- Coverage for uncollectible items of deposit up to $25,000 per loss and in the
aggregate per year
- Computer systems fraud coverage including VIT, telefacsimile, virus and hacker coverage
- Coverage for partners (if a partnership)
- Coverage for dishonesty of employees and independent Registered Representatives
- ERISA bond coverage for named in-house pension and benefit plans is included at no additional charge up to your bond limit (subject to a $500,000 cap)
- Optional two-year bond – lock in current rates and SAVE 10% over 2 years. Pay in two annual installments.
Click here to download the Securities Dealer Fidelity Bond Self-Rating Program Features and Application.
Click here to read the NEW Financial Industry Regulatory Authority Rule 4360 (effective January 1, 2012) regarding Fidelity Bonds.