Is there Insurance Coverage for Fraud and Theft Victims?

STOCKBROKER LAW - Posted on March 28, 2011

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.