Commercial Crime insurance protects your business from the following exposures:
- Employee Dishonesty
- Computer and Funds Transfer Fraud
- Burglary, Robbery or Theft of money
- Forgery or Alteration
- Theft of Client Property
Protection for theft of property or money by your employees. Additionally, you can add ERISA Fidelity to protect your business from loss to Employee Benefit Plans resulting from theft by an employee.
Computer & Funds Transfer Fraud
Protection for loss of money or property relating to use of a computer to fraudulently transfer money out of your possession.
The definition of “fraudulent instructions” requires it to be done by someone not otherwise authorized to withdraw money (this is important consideration under “Common Coverage Gaps” below).
Money & Securities: Robbery/Burglary/Theft (Inside and Outside premises)
This is usually broken out into more than one section of the crime insurance policy, but it involves the stolen loss of money or securities either on or off your premises.
Forgery or Alteration
Coverage for loss resulting from theft by forgery or alteration of checks, bank drafts or other financial instruments.
Theft of Client Property
Coverage if your clients or guests sustain loss to their property or money by theft while on your premises. It can also be written to include coverage off premises.
Fraud Magazine published a case study on how one trusted assistant was able to steal over $365,000 from her employer. These stories are more common than you’d think and it’s almost always someone you trust who embezzles your company. For this reason, Employee Theft coverage is very important and it is fairly inexpensive to add it as a standalone insurance policy or as part of a Business Owners Policy.
Computer & Funds Transfer Fraud usually contains some gaps in coverage if the crime results from the employee or owner actually authorizing the transfer, then coverage may not be triggered under the traditional definition of “fraudulent instruction”.
You will need to purchase a Cyber policy to fill this gap or buy Crime coverage from a carrier who addresses and fills this gap in their policy form or via endorsement.
Definition of Employee
Managers, Directors, Agents, and Independent Contractors are NOT considered employees, which can result in gaps for Employee Dishonesty coverage. If you need or desire this kind of coverage, an endorsement is usually required.
Commercial Crime Insurance, clearly, won’t protect you from every type of exposure your business may face. As a result, there are other types of insurance designed to meet your entire needs.
Here are a few:
- Professional Liability
- Employment Practices Liability
- Directors & Officers Liability
- Fiduciary Liability
- Business Auto Liability
- Workers Compensation
- Cyber Insurance
- Flood Insurance
- Commercial Umbrella
- Surety Bonds
>> LEARN ABOUT OTHER COMMERCIAL INSURANCE SOLUTIONS