Travelers Introduces New Financial Institutions Bond for Asset Managers

By: The Travelers Companies, Inc. via Business Wire

January 04, 2024 at 09:00 AM EST

Simplified base form includes previous endorsements and offers expanded coverage

The Travelers Companies, Inc. (NYSE: TRV) today announced that it is now offering a new financial institutions bond 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.

“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,” said Tracey Santor, Assistant Vice President and Financial Institution Bond Product Manager at Travelers. “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.”

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.

The new bond is easier to read and doesn’t require verification for fraudulent instruction coverage. More days are also available to policyholders when they are required to report claim activity: 60 days instead of 30 days to send written notice of a loss after discovery; 90 days instead of 30 days for notice of any legal proceeding involving an insured’s liability for damages; and 90 days instead of 30 days to provide proof of loss after adjudication or settlement.

Pending state approval, the new bond will be available starting Jan. 1, 2024, for new customers and April 1, 2024, for existing customers up for renewal.

About Travelers

The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of approximately $37 billion in 2022. For more information, visit Travelers.com.