Whether it is embezzlement or other dishonest conduct by employees or agents, counterfeit documents, forgeries, theft or fraud by third parties, you may have insurance under various forms of fidelity bonds or commercial crime insurance. But the path from the discovery of loss to its recovery can be treacherous with many potential traps for the unwary. Our insurance recovery attorneys have the extensive experience needed to help you to avoid these pitfalls and achieve the maximum recovery to which you are entitled.
We have handled complex fidelity bond and commercial claims for the following types of clients:
- Banks, Savings and Loan Associations and Credit Unions
- Life Insurance, Retirement Savings and Pension Companies
- Manufacturers & Distributors
- Retail Companies
- Broker Dealer and Financial Advisor Companies
- Government Organizations
Reed Smith attorneys have advised clients throughout the entire process of bonds claims including, the investigation of the loss, preparations of proofs of loss, coordinating cooperation with and investigations by carriers, and marshalling evidence and testimony to support a claim. In this process, we have advised clients and helped them negotiate potential legal minefields regarding discovery of loss, termination of employees, contractual and legal time deadlines, overlapping coverage with D&O and Professional Liability policies, insurer subrogation, loss in excess of policy limits and "salvage" issues. Our attorneys have addressed claims in the U.S. and overseas and have dealt with all of the major insurers in the U.S. market and several others in the London and European markets. We have addressed claims ranging from several million dollars to more than one hundred million dollars in loss and have also addressed both recoveries for the insured and third-party liability coverage under bonds.
Discovery and Proof of Loss
Coverage under fidelity bonds, financial institution bonds, and commercial crime policies is generally triggered by the "discovery" of loss which often sets in motion stringent time frames for reporting such loss to the insurers and filing sworn proofs of loss. In many situations, these deadlines occur well before the time when an insured can fully complete its investigation of the matter and under circumstances where there may be adverse publicity and/or highly confidential information which has to be appropriately handled and protected. Armed with extensive experience in civil and criminal litigation, our attorneys are creative, flexible and adaptive and can work with you to devise a multifaceted strategy to investigate and potentially prosecute wrongdoers, while helping you address actual or potential clams from third parties and simultaneously meet your obligations to your insurers to achieve the maximum insurance recovery.
Investigations, "Adjustments" and Recovery Actions by Insurers
Bond and commercial insurers may have rights to interview wrongdoers, examine insureds under oath, and conduct their own investigations. In addition, once an insurer has paid a loss it may succeed to some or all of the insured's rights to seek recoveries from wrongdoers and third parties. These activities often, at a minimum, create substantial inconvenience for the policyholder and its executives and employees and may lead to duplicative efforts by the insured and insurers. In more extreme cases, they may lead to efforts by an insurer to unjustifiably reduce loss paid under the bond, wrongfully deny coverage or usurp an insured's rights to recover uninsured loss. Reed Smith Insurance Recovery attorneys have developed and implemented successful strategies to prevent or redress these problems in variety of bond claim contexts large and small.
Over the course of several decades, the insurance recovery attorneys of Reed Smith have developed an extensive track record, in the United States and abroad, of achieving successful recoveries under fidelity and crime bonds. We have represented banks, savings and loan associations and credit unions, life insurance, retirement savings and pension companies, utilities, manufacturers and distributors, retail companies, broker dealers, financial advisors, governmental organizations and others. We have achieved success recoveries in cases involving loss ranging from many millions to many thousands of dollars through negotiation, mediation, arbitration and litigation. If you face a bond loss, you will not find a law firm better equipped than the Insurance Recovery attorneys of Reed Smith to assist, advise and represent you to successfully achieve the recovery to which you are entitled under your bond policies.