Bankers blanket coverage,
Form 24, 25 & 27 — Texas-licensed.
Comprehensive employee-crime and financial-crime coverage for Texas banks, credit unions, and lenders. FDIC, OCC, Texas Department of Banking, and NCUA compliant. Premium approx. 0.2%–0.5% of coverage annually.
- Form 24 (banks), 25 (thrifts), 581 (credit unions)
- Computer crime & cyber endorsements
- Harris County and statewide
The core crime-coverage policy every regulated lender carries.
A financial institution bond — historically called a Banker\'s Blanket Bond — is the comprehensive employee-crime and financial-crime policy written exclusively for banks, credit unions, savings institutions, and other regulated lenders. It is the primary protection against insider fraud and external crimes targeting cash, securities, and customer accounts.
Standard insuring agreements cover: (A) employee dishonesty, (B) on-premises loss of money and securities, (C) in-transit loss, (D) forgery or alteration of checks and drafts, (E) securities fraud, and (F) counterfeit currency. Optional riders extend to computer crime, cyber-extortion, social-engineering fraud, and kidnap/extortion.
Regulators — the FDIC, OCC, Texas Department of Banking, and NCUA — all require adequate fidelity coverage as a condition of charter. Minimum limits vary by institution size and risk profile.
Individual underwriting based on institution size and controls.
Unlike small fidelity bonds, financial institution bonds are hand-priced after review of your call report, loss history, and internal controls questionnaire.
| Institution size | Typical coverage | Annual premium |
|---|---|---|
| Under $50M assets Small community bank / CU | $500K–$1M | $1,500–$4,000 |
| $50M–$250M assets Community bank | $1M–$2.5M | $3,000–$10,000 |
| $250M–$1B assets Regional bank | $2.5M–$10M | $8,000–$35,000 |
| $1B+ assets Large regional / national | $10M+ | Custom quote |
Premiums generally run 0.2%–0.5% of coverage. Cyber and computer crime riders priced separately.
Four steps — underwriting takes 2–4 weeks.
- 01
Application & exposure review
Long-form application plus most recent call report, 3-year loss runs, internal controls questionnaire (ICQ), and organizational chart.
- 02
Surety review
Underwriter reviews financials, audit exceptions, and prior fidelity losses. Additional questions common on first submission.
- 03
Quote & endorsements
We present quote plus optional riders (computer crime, cyber, social engineering, kidnap/ransom). Board selects coverage.
- 04
Binding & filing
Bond bound on effective date. Certificate provided for regulator exam file. Renewal application begins 60 days before expiration.
Regulators, forms, and what the bond must include.
FDIC (12 CFR §326.5 requires fidelity coverage adequate to risk), OCC for national banks, Texas Department of Banking for state-chartered institutions.
NCUA §713.3 sets minimum fidelity-bond limits for federally insured credit unions, graduated by asset size from $250K to $5M.
SFAA Form 24 (Financial Institution Bond — banks), Form 25 (Savings Institution Bond), Form 27 (Investment Company Bond), NCUA 581 / CUMIS 581 (credit unions).
Continuous. One-year policy with annual renewal. Coverage is discovery-based — losses discovered during the policy period are covered regardless of when they occurred.
The institution itself. First-party coverage — pays the bank or credit union directly for covered losses, subject to deductible.
Built for regulated Texas lenders.
Regulator-ready documentation
We prepare the certificate in the exact form your FDIC or NCUA examiner will expect — no follow-up emails during exam.
Endorsement depth
Cyber, computer crime, social engineering, kidnap/ransom — we place the full stack, not just the base bond.
Community-bank focus
We write small and mid-size Texas community banks and credit unions where the big national brokers won\'t take the time.
Other employee-crime coverage options.
Financial institution bond questions from Texas lenders.
What is a financial institution bond?
A financial institution bond is a specialized fidelity bond (also called a Banker's Blanket Bond) that protects banks, credit unions, and similar lenders against losses from employee dishonesty, forgery, check alteration, robbery, burglary, counterfeit currency, and computer fraud. The two primary forms are SFAA Form 24 (commercial banks) and Form 25 (savings institutions); credit unions use Form 581 / CUMIS equivalents.
Is a financial institution bond required in Texas?
Yes. FDIC-insured Texas banks must carry fidelity coverage to the satisfaction of their federal and state regulators (FDIC, OCC, Texas Department of Banking). Texas credit unions must comply with NCUA §713.3, which mandates minimum fidelity coverage based on asset size — ranging from $250,000 for small CUs up to several million for larger institutions.
How much does a financial institution bond cost?
Premiums depend on coverage limit, institution size, loss history, and internal controls. For a community bank with $100M in assets carrying a $1M bond, annual premiums typically run $3,000–$8,000. Larger institutions and higher limits price as a percentage of coverage — roughly 0.2%–0.5% depending on underwriting.
What does Form 24 vs Form 25 cover?
Form 24 is the Financial Institution Bond for commercial banks — Insuring Agreements A through F cover fidelity, on-premises loss, in-transit loss, forgery/alteration, securities, and counterfeit currency. Form 25 is the Savings Institution Bond covering the same risks for thrifts and savings banks. Both are issued by Surety Association of America standard forms.
Is computer fraud and electronic crime covered?
Base Form 24/25 provides limited coverage. Comprehensive protection requires the Computer Systems Rider (Insuring Agreement E) and often a separate Cyber Crime endorsement covering social engineering, funds transfer fraud, and cyber-extortion. We place these endorsements routinely for Texas community banks.
What is the NCUA minimum for credit unions?
NCUA §713.3 sets fidelity-bond minimums by asset size: $250K for CUs under $4M in assets, graduated up through $5M maximum for institutions over $500M. Many credit unions carry coverage above the NCUA minimum to match their actual risk exposure and loan portfolio concentration.
How long does underwriting take?
Financial institution bonds require detailed underwriting — application, financial statements, loss runs, internal control questionnaire, and sometimes a regulatory exam review. Typical turnaround is 2–4 weeks for new coverage; renewals and endorsements on existing policies can be same-week.
Quote your Texas financial institution bond today.
Form 24, 25, 27, or 581. Regulator-ready certificates. Texas-licensed carriers.