Is there Insurance Coverage for Fraud and Theft Victims?

Stockbroker Law - Monday, March 28, 2011
Is there Insurance Coverage for Fraud and Theft Victims?

In many instances, yes.  Victims of theft and embezzlement schemes often make the mistake of assuming they are not afforded any insurance protection or other financial security when their monies are stolen and embezzled.  Licensed brokerage firms are required to carry broker blanket bond and other types of insurance to cover acts of investor victimization. 

 Additionally, most legitimate banks, insurance companies and brokerage firms carry liability insurance coverage, errors and omissions coverage, enhanced fidelity/theft loss coverage, blanket bonds, broker bonds, and other forms of insurance protection afforded to victimized investors by private insurance companies. 

Further, victims of bank theft have access to coverage out of the Federal Deposit Insurance Corporation (FDIC), victims of brokerage investment theft have access to coverage under the Securities Investor Protection Corporation (SIPC), and victims of insurance brokerage fraud may have access to civil recovery under existing insurance policies. 

If you feel you have been victimized by financial fraud, we offer you a free initial consultation to discuss the possibilities of sources of insurance-type coverage and other financial coverage to help make you whole as a result of the losses you have sustained.

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