What is Crime Insurance?
Commercial crime insurance, sometimes known as fidelity and crime insurance or employee dishonesty insurance, protects your business from crime-related losses not typically covered by commercial property or other lines of insurance. Mostly known to cover types of employee dishonesty, crime insurance covers forgery, money and securities theft, burglary or robbery and computer fraud. Crime insurance can reimburse you for theft of cash and checks, which is not commonly covered by business property insurance. Commercial crime coverage typically contains the following seven insuring agreements:
- Employee Theft
- Forgery or Alteration
- Inside the Premises—Theft of Money and Securities
- Inside the Premises—Robbery or Safe Burglary of Other Property
- Outside the Premises
- Computer Fraud
- Money Orders and Counterfeit Paper Currency
Crime insurance policies are usually very customizable, with options for every type of business and their crime risks. Three common endorsements to a commercial crime insurance policy are as follows:
- Theft or dishonest acts. Covers you for theft of money or property and dishonest acts committed by your employees.
- Premises theft and robbery outside the business premises. Covers losses resulting from incidents occurring during business hours both inside business premises and while employees are doing work-related activities outside the premises (such as making bank deposits).
- Theft of money and securities. Protects your business against theft, disappearance or destruction of your money both on and off business premises.
Crime insurance can cover much more than just the basic theft and robbery scenarios. Kidnap, ransom and extortion coverages can be endorsed for companies with those specific risks, for example.
Due to the exponential increase in technology used in business today, computer fraud is a growing concern for any size business. Crime insurance can cover some monetary losses from cyber-crimes, however to ensure your business is prepared to manage risks such as data breaches, cyber security insurance is recommended.
Crime insurance is typically packaged, or bundled, with general liability policies, BOPs, or CPPs. Depending on your industry you may have some typical increased risks. For example, a bar is considered to have a high risk of customer-employee and customer-customer assault claims. A bar BOP may already include this coverage as well as other crimes related to the bar and liquor sales industry. This is why it is extremely important to work with an agent who understands your industry and its risks. The Insurance Shop prides itself on its customer service. We have an expert for every industry who will guide you through identifying risks and choosing coverage that makes sense, whether it be a monoline (single line of insurance) or a multiline package to cover your whole business.
Five things you should know about crime insurance:
- Most corporate theft is perpetuated by employees.
- Commercial crime insurance is not included in most commercial property or general liability policies.
- Not all crimes will be covered.
- Some cyber-crimes are covered.
- Employees have to act for financial gain.