Fidelity-Pak Escrow Security Bond Insurance
Clients work hard to accumulate their escrow funds; therefore, as title agents and attorneys, it is up to you to protect their funds against theft and other illegitimate acts. In fact, in today's regulatory arena, you must be able to show prospects and clients that you have the proper insurance in place to safeguard their escrow funds. Escrow Security Bond Insurance not only helps protect the escrow funds you handle, but it also safeguards agents against your own financial losses due to fraudulent activities.What is Escrow Security Bond Insurance?
The Escrow Security Bond, underwritten by Lloyd's of London, is a special type of fidelity bond that shields agents against financial loss as a result of fraudulent activities, such as theft of escrow funds. This type of bond differs from other types of liability insurance policies in that it meets lenders' needs in the regulatory environment, while other types of liability insurance may not.Escrow Security Bond Insurance Under the Fidelity-Pak Program
The Escrow Security Bond under the Fidelity-Pak Program
provides a wide range of coverage that not only meets lenders concerns but also safeguards attorney and title agents. Some unique features of the Fidelity-Pak Escrow Security Bond include:
Escrow Security Bond with Computer Crime Rider
- This coverage offers security for losses that Attorneys may suffer as a consequence of dishonest, illegal, or fraudulent acts by partners, shareholders, and employees. Under this coverage, many forms of embezzlement, such as fictitious accounts receivable, cash skimming, kickbacks, purchasing/payback fraud, and gratuities and gifts, qualify as dishonest acts. ESB first-party insurance is also available for various other losses that may be suffered as a result of vandalism, theft, and computer crime, which may not be available through other forms of third-party liability or commercial first-party insurance.
- Fraudulent Email Wire Transfer Coverage (First-Party Coverage)
- This coverage compensates, directly to the insured, up to $250,000 for an insured loss incurred by an employee of the covered transferring escrow funds from an account of the insured in trust upon dishonest email wire instructions received from a criminal claiming to be a lawful party to the transaction.
- Coverage for the Insured in the event of theft by another partner or shareholder
- Sometimes, partners and shareholders perform dishonest acts that can lead to financial loss for your business. Under the Fidelity-Pak ESB, Insureds are covered in the event of theft by another shareholder or partner, provided they are also an employee of the Insured, of settlement funds or other money/property embezzlement from operating or IOLTA accounts.
- Computer Crime
- This coverage provides protection against losses resulting directly from computer hacking or wire transfers. Coverage is available for losses caused by hackers hacking or breaching the Insured's computer systems and deflecting money/property from the Insured's escrow, IOLTA, or operating account at their bank to an illegal account managed by the hacker.