Forgery Insurance

What Does Forgery Insurance Mean?

Forgery insurance is a policy that protects individuals or companies from loss or damage resulting from altered, forged, or counterfeit financial instruments. It is also referred to as alteration coverage, depositors’ forgery insurance, or a forgery bond.

Insuranceopedia Explains Forgery Insurance

A person or company that falls victim to a forged financial instrument, such as checks or bank drafts, can be held liable for thousands or even millions of dollars. To protect themselves from this risk, they can obtain forgery insurance. In such cases, the insurer compensates the victim of a counterfeit check or altered bank deposit for the loss incurred, up to the policy limits.