What Insurance Covers Forged Checks?
Crime insurance may cover direct loss from forged or altered covered checks; electronic payment instructions may fall outside the instrument definition.
A Travelers specimen covers direct loss from forgery or alteration of specified written instruments and describes limited legal-defense reimbursement if the business refuses to pay an instrument alleged to be forged. Electronic payment directions may be treated differently from paper checks.
Ask which accounts and instruments qualify, how the policy treats electronic signatures, and what notice is required. Contact the bank promptly too; bank reimbursement and insurance claims are separate processes.
