A Social Security Representative Payee organization was required by the Social Security Administration (SSA) to obtain substantial crime insurance protection covering funds entrusted to the organization on behalf of its beneficiaries.

The required limit exceeded $4 million.

Several insurance brokers had attempted to secure coverage but were unsuccessful. Many standard insurance companies either declined to quote the account or lacked the appetite to provide coverage at the required limits.

As time passed, the organization faced increasing pressure to satisfy SSA requirements and secure the necessary protection.

Representative Payee organizations present unique underwriting challenges.

Insurance companies must evaluate:

• The amount of beneficiary funds under management
• Internal financial controls
• Employee access to funds
• Accounting and reporting procedures
• Exposure to employee dishonesty and fraud

In addition, many insurance companies are unwilling to provide limits exceeding several million dollars for this class of business.

The result was a situation where the organization needed coverage, but available markets were limited.

Rather than approaching only traditional insurance markets, JRG Surety leveraged its specialized relationships and experience with fidelity and crime insurance underwriting.

After reviewing the organization's operations and underwriting requirements, JRG Surety identified a strategy that would provide the full amount of required protection.

The solution involved structuring the coverage through two separate insurance carriers:

• A primary crime policy providing approximately $3 million in coverage
• An excess crime policy providing an additional $1.2 million in coverage

Combined, the policies delivered more than $4.2 million in protection, satisfying the organization's requirements.

The organization needed coverage quickly.

JRG Surety worked directly with underwriters, coordinated underwriting submissions, and navigated multiple carrier requirements to bring the transaction together within the required timeframe.

By maintaining close communication with both the client and the insurance carriers, JRG Surety was able to move the account from application to binding efficiently and successfully.

The client obtained:

• Over $4.2 million in crime insurance protection
• Coverage acceptable to satisfy SSA requirements
• A solution after other brokers had been unable to secure the necessary limits
• Continued confidence in its ability to serve beneficiaries and maintain compliance

Many insurance brokers have limited experience placing fidelity bonds and commercial crime insurance for Representative Payee organizations.

Because these accounts require specialized underwriting knowledge and access to appropriate insurance markets, finding the right solution often depends on understanding both the client's operations and the available carriers.

At JRG Surety, we specialize in finding solutions for difficult bonding and insurance situations, including fidelity bonds, employee dishonesty coverage, commercial crime insurance, and Social Security Representative Payee requirements.

If your organization has been told that coverage is difficult to obtain, or if previous attempts have been unsuccessful, contact JRG Surety. We may be able to identify options that others have overlooked.