Financial Institution
Crime Bond

The Bond provides coverage for certain crimes committed against the bank including embezzlements, robberies, burglaries, theft of funds while in transit, check forgeries, forged fax withdrawal orders, debit card fraud, extortion threats to persons and property, etc.  Safe Depository Liability, Mortgage Errors and Omissions and Defective Signatures by Fraud on Mortgages coverages are also available and can be added upon request.  

Directors, Officers, and Employees Indemnity Coverage

This policy provides defense costs for directors, officers and employees when they are named in a lawsuit which alleges they committed some wrongful act while acting as a director, officer or employee of the bank.  In addition to defense costs, the policy will provide coverage for judgments and settlements for covered losses. 

Check Kiting Policy

This policy is designed to provide coverage for the classic check kiting fraud perpetrated by a customer against the bank.  The manipulation of checking accounts in two or more banks using the “float time” to make it appear that there are valid funds in the accounts when in fact no funds actually exist.       This coverage is offered in liability limits up to $250,000. 

• No application is required for this coverage.  Please contact KBS at (785) 228-0000 to obtain a quote.

Bank Employment
Practices Policy

This policy provides coverage for the defense of the bank along with its directors and officers in situations where an employee, former employee or an employee applicant alleges that the bank wrongfully terminated the employment relationship; failed to promote the employee; wrongfully disciplined the employee; subjected the employee to workplace harassment; or wrongfully failed to employ an applicant.

Internet Banking Theft Catastrophe Bond

This bond provides coverage for the catastrophe of when a crook or a hacker is able to exploit a hole or hack into the bank’s Internet Banking or Home Banking system and steal funds from multiple customers’ accounts.     

Banking Privacy Liability Policy

This policy provides coverage for failure of the bank to protect the private or confidential information of a bank customer which is held at the bank from unauthorized access.  Such unauthorized access could be direct access at the bank or through the Internet when such information is being held or retained on computer systems operated by the bank or operated on behalf of the bank.  The policy also provides coverage for failure of the bank to prevent the transmission of a virus from a bank’s web site through the Internet to such bank customers’ computer. 

Bank Insurance Agents Professional Errors & Omissions Indemnity Policy

The policy is designed for banks that sell insurance products to protect the bank when it is accused by a customer of a wrongful act (error or omission) relating to the sale of insurance.  

    Cost of Replacing Compromised Bank  Cards Policy

         This policy is designed to reimburse the bank for the cost of replacing bank cards when an event or series of interrelated events results in the compromising for a large group of bank cards which must be replaced.