Covers financial institutions for direct financial losses caused by traders acting outside their authority. Unauthorised trading means trading which at the time of trade is: (a) in excess of permitted financial limits; or (b) outside of permitted product lines; or (c) not with a designated counterparty. The policy does not cover simple errors or losses caused by traders acting on behalf of third parties and that part of any loss that is deemed to have been authorised. Cover is usually arranged in conjunction with a bankers’ blanket bond.