Trading loss coverage

{
  "id": "MLC-T-INS-003355",
  "term": "Trading loss coverage",
  "field": "Insurance and risk management",
  "definition": "An insurance provision, often an extension to a fidelity bond or crime policy, that protects a financial institution against direct financial losses resulting from fraudulent or unauthorized trading by its employees. This coverage applies to dishonest acts intended to cause the institution a loss or to obtain a personal financial gain for the employee or another party. It does not cover losses from poor judgment, market fluctuations, or errors in authorized trading activities.",
  "url": "https://mlchart.com/terminology/insurance/trading-loss-coverage/"
}