The Banks & Financial Institutions Division has been a market-leading specialist in the placement and servicing of insurance and reinsurance of Banks and other financial institutions for over thirty years.

Banks & Financial Institutions

The Division has a global spread of clients and is active in assisting its clients with risk review and presentation of their insurance needs. Many policy wordings used at Lloyd’s have been written by our experienced executives for our Banks and Financial Institutions clients.

The traditional Bankers’ Blanket Bond policy is commonly divided into seven sections, as follows:

Infidelity – coverage in respect of the losses sustained due to the dishonest or fraudulent acts of
the Insured’s employees.

Losses sustained under this category of coverage do not distinguish between any particular
position, level, or territory, and for many years have accounted for a large proportion of any
institutions losses. In some extreme cases, substantial losses emanating from the dishonesty of
employees has resulted in the institution’s liquidation.

However, it should be noted that there are many definitions of “employee” and in accordance
with their requirements, each financial institution should seek to obtain the widest available
definition to suit their individual needs.

It should also be noted that whilst the standard Bankers Blanket Bond policy has provision for the
dishonest and/or fraudulent act of employees involved in trading, coverage usually excludes
“trading losses” which arise through the negligent act of employees (i.e. breaching trading
guidelines on foreign exchange transactions). Actions involving the infidelity of employees shall
be covered only when they involve “improper personal financial gain”.

In view of the foregoing the careful wording of this clause is imperative, to ensure adequate
protection of the institution’s interests.

The definition of “premises” varies, obviously the most important premises are the offices of the
insured institution, and coverage is automatically afforded to all offices, or premises, in existence
at the inception of the bond. Also included are the premises of any other institution for which the
Insured party has care, custody and control.

Valuable property on the institution’s premises such as gold bullion, precious metals and of
course cash are included within this coverage, and if necessary coverage may be extended further
to include such items as certificates of deposit etc.

Again it is possible to expand coverage to include any special instruments or property peculiar to
each institution’s requirements.

The definition of “premises” varies, obviously the most important premises are the offices of the
insured institution, and coverage is automatically afforded to all offices, or premises, in existence
at the inception of the bond. Also included are the premises of any other institution for which the
Insured party has care, custody and control.

Valuable property on the institution’s premises such as gold bullion, precious metals and of
course cash are included within this coverage, and if necessary coverage may be extended further
to include such items as certificates of deposit etc.

Again it is possible to expand coverage to include any special instruments or property peculiar to
each institution’s requirements.

The definition of “premises” varies, obviously the most important premises are the offices of the
insured institution, and coverage is automatically afforded to all offices, or premises, in existence
at the inception of the bond. Also included are the premises of any other institution for which the
Insured party has care, custody and control.

Valuable property on the institution’s premises such as gold bullion, precious metals and of
course cash are included within this coverage, and if necessary coverage may be extended further
to include such items as certificates of deposit etc.

Again it is possible to expand coverage to include any special instruments or property peculiar to
each institution’s requirements.

The definition of “premises” varies, obviously the most important premises are the offices of the
insured institution, and coverage is automatically afforded to all offices, or premises, in existence
at the inception of the bond. Also included are the premises of any other institution for which the
Insured party has care, custody and control.

Valuable property on the institution’s premises such as gold bullion, precious metals and of
course cash are included within this coverage, and if necessary coverage may be extended further
to include such items as certificates of deposit etc.

Again it is possible to expand coverage to include any special instruments or property peculiar to
each institution’s requirements.

The definition of “premises” varies, obviously the most important premises are the offices of the
insured institution, and coverage is automatically afforded to all offices, or premises, in existence
at the inception of the bond. Also included are the premises of any other institution for which the
Insured party has care, custody and control.

Valuable property on the institution’s premises such as gold bullion, precious metals and of
course cash are included within this coverage, and if necessary coverage may be extended further
to include such items as certificates of deposit etc.

Again it is possible to expand coverage to include any special instruments or property peculiar to
each institution’s requirements.

The definition of “premises” varies, obviously the most important premises are the offices of the
insured institution, and coverage is automatically afforded to all offices, or premises, in existence
at the inception of the bond. Also included are the premises of any other institution for which the
Insured party has care, custody and control.

Valuable property on the institution’s premises such as gold bullion, precious metals and of
course cash are included within this coverage, and if necessary coverage may be extended further
to include such items as certificates of deposit etc.

Again it is possible to expand coverage to include any special instruments or property peculiar to
each institution’s requirements.

Within this structure we are then able to amend and extend each clause or paragraph to meet the needs of each individual client. Where appropriate we may recommend additional specialist coverage’s reflecting the assessment of the exposure to risk. These may include:

Infidelity – coverage in respect of the losses sustained due to the dishonest or fraudulent acts of
the Insured’s employees.

Losses sustained under this category of coverage do not distinguish between any particular
position, level, or territory, and for many years have accounted for a large proportion of any
institutions losses. In some extreme cases, substantial losses emanating from the dishonesty of
employees has resulted in the institution’s liquidation.

However, it should be noted that there are many definitions of “employee” and in accordance
with their requirements, each financial institution should seek to obtain the widest available
definition to suit their individual needs.

It should also be noted that whilst the standard Bankers Blanket Bond policy has provision for the
dishonest and/or fraudulent act of employees involved in trading, coverage usually excludes
“trading losses” which arise through the negligent act of employees (i.e. breaching trading
guidelines on foreign exchange transactions). Actions involving the infidelity of employees shall
be covered only when they involve “improper personal financial gain”.

In view of the foregoing the careful wording of this clause is imperative, to ensure adequate
protection of the institution’s interests.

The definition of “premises” varies, obviously the most important premises are the offices of the
insured institution, and coverage is automatically afforded to all offices, or premises, in existence
at the inception of the bond. Also included are the premises of any other institution for which the
Insured party has care, custody and control.

Valuable property on the institution’s premises such as gold bullion, precious metals and of
course cash are included within this coverage, and if necessary coverage may be extended further
to include such items as certificates of deposit etc.

Again it is possible to expand coverage to include any special instruments or property peculiar to
each institution’s requirements.

The definition of “premises” varies, obviously the most important premises are the offices of the
insured institution, and coverage is automatically afforded to all offices, or premises, in existence
at the inception of the bond. Also included are the premises of any other institution for which the
Insured party has care, custody and control.

Valuable property on the institution’s premises such as gold bullion, precious metals and of
course cash are included within this coverage, and if necessary coverage may be extended further
to include such items as certificates of deposit etc.

Again it is possible to expand coverage to include any special instruments or property peculiar to
each institution’s requirements.

The definition of “premises” varies, obviously the most important premises are the offices of the
insured institution, and coverage is automatically afforded to all offices, or premises, in existence
at the inception of the bond. Also included are the premises of any other institution for which the
Insured party has care, custody and control.

Valuable property on the institution’s premises such as gold bullion, precious metals and of
course cash are included within this coverage, and if necessary coverage may be extended further
to include such items as certificates of deposit etc.

Again it is possible to expand coverage to include any special instruments or property peculiar to
each institution’s requirements.

The definition of “premises” varies, obviously the most important premises are the offices of the
insured institution, and coverage is automatically afforded to all offices, or premises, in existence
at the inception of the bond. Also included are the premises of any other institution for which the
Insured party has care, custody and control.

Valuable property on the institution’s premises such as gold bullion, precious metals and of
course cash are included within this coverage, and if necessary coverage may be extended further
to include such items as certificates of deposit etc.

Again it is possible to expand coverage to include any special instruments or property peculiar to
each institution’s requirements.

The definition of “premises” varies, obviously the most important premises are the offices of the
insured institution, and coverage is automatically afforded to all offices, or premises, in existence
at the inception of the bond. Also included are the premises of any other institution for which the
Insured party has care, custody and control.

Valuable property on the institution’s premises such as gold bullion, precious metals and of
course cash are included within this coverage, and if necessary coverage may be extended further
to include such items as certificates of deposit etc.

Again it is possible to expand coverage to include any special instruments or property peculiar to
each institution’s requirements.

The definition of “premises” varies, obviously the most important premises are the offices of the
insured institution, and coverage is automatically afforded to all offices, or premises, in existence
at the inception of the bond. Also included are the premises of any other institution for which the
Insured party has care, custody and control.

Valuable property on the institution’s premises such as gold bullion, precious metals and of
course cash are included within this coverage, and if necessary coverage may be extended further
to include such items as certificates of deposit etc.

Again it is possible to expand coverage to include any special instruments or property peculiar to
each institution’s requirements.

Division Personnel

Stewart Brown joined Butcher, Robinson & Staples in 1979 and is an experienced broker within the Financial Institutions market. He is Chief Executive Officer of the group holding company and Chairman of Butcher, Robinson & Staples International Limited, the authorized Lloyd’s broker. He is a registered member of the Chartered Insurance Institute.

Tel: +44 020 7337 0337

Email: brown@brsint.com

Stewart Brown joined Butcher, Robinson & Staples in 1979 and is an experienced broker within the Financial Institutions market. He is Chief Executive Officer of the group holding company and Chairman of Butcher, Robinson & Staples International Limited, the authorized Lloyd’s broker. He is a registered member of the Chartered Insurance Institute.

Tel: +44 020 7337 0337

Email: brown@brsint.com

Stewart Brown joined Butcher, Robinson & Staples in 1979 and is an experienced broker within the Financial Institutions market. He is Chief Executive Officer of the group holding company and Chairman of Butcher, Robinson & Staples International Limited, the authorized Lloyd’s broker. He is a registered member of the Chartered Insurance Institute.

Tel: +44 020 7337 0337

Email: brown@brsint.com

Stewart Brown joined Butcher, Robinson & Staples in 1979 and is an experienced broker within the Financial Institutions market. He is Chief Executive Officer of the group holding company and Chairman of Butcher, Robinson & Staples International Limited, the authorized Lloyd’s broker. He is a registered member of the Chartered Insurance Institute.

Tel: +44 020 7337 0337

Email: brown@brsint.com

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Banks & Financial Institutions

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