Unauthorized Signature Rider

The Unauthorized Signature Rider covers losses resulting directly from the financial institution honoring negotiable instruments or withdrawal orders that bear unauthorized signatures or endorsements. An unauthorized signature or endorsement is a signature or endorsement made by a person whose name is not reflected on the appropriate signature card for the account in question.

Sample Rider
Coverage Summaries of Bond Riders

Claims Examples
  • A bookkeeper of a corporate customer signs her name as maker on a company check and deposits the funds into her personal account. When the bookkeeper disappears with the funds, the bank is held liable for the funds, as the bookkeeper is not an authorized signatory on the account. (Note that the loss would not be covered under Insuring Agreement D of the Bond as no forgery.)

  • To recover losses under this rider, the financial institution must have the signatures of all persons authorized to sign on the account on file.

Notwithstanding any language to the contrary, nothing contained herein constitutes nor is intended to constitute an offer, inducement, promise, or contract of any kind. All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. For details on the coverage provided by your specific contract of insurance, please refer to your policy. Coverage is subject to underwriting guidelines and may not be available in all states. Limits may be capped for underwriting reasons. Any links to any sites which are not originated by ABA Insurance Services Inc. (ABAIS) are provided only as a courtesy and are not intended to nor do they constitute an endorsement by ABAIS of the linked materials.