Crime Insurance Coverage

What Is Commercial Crime Insurance?

Simply stated, crime insurance is a broad term used to describe a selection of individual coverages relating to criminal actions. The reality is that every type of organization is vulnerable to criminal actions. These acts may be crimes of opportunity or attacks by more determined and calculating criminal elements. Computerization and modern technology have made most corporations and organizations easier targets.

Obviously, one of the first lines of defense that corporations can take to protect their assets against criminal acts is to put in place a well established system of procedures and internal controls. Today, however, this defense needs to be reinforced by a crime insurance policy that includes all of the standard package coverages.

Listed below are standard types of coverage and special or extended coverage that can be added to the package policy:

Standard Coverage for Losses Due To:

• Employee dishonesty
• Disappearance of money and securities
• Check forgery or alterations
• Acceptance of counterfeit money orders and paper currency
• Credit card forgery
• Depositors forgery
• Computer fraud and funds transfer fraud
• Loss of monies inside insured premises
• Loss of monies outside the premises
• Professional fees

Specialized Coverage For Losses Due To the Need For:

• Third party bond

I Already Have Insurance. Doesn’t That Cover Me?

In many cases, the answer is “No.” Other policies usually do not provide crime insurance coverage for the risks outlined above. While many “package policies” may include some crime coverage, the limits may not be adequate for your needs. It is always a good idea to talk to your broker about your precise crime coverage insurance needs.

I Trust My Employees. I Don’t Need Crime Insurance.

Trust is a core element of any relationship—business or otherwise. And no one hires, at least knowingly, a dishonest employee. Sometimes people change, however. Employees can become dishonest, albeit only a minority of them do. Employees can rationalize their theft in many ways: ‘the company won’t miss it,’ ‘they’re not paying me enough,’ or the person succumbs to a gambling or some other addiction.

Unfortunately businesses do go bankrupt because their employees’ steal large amounts of money, or smaller amounts over a period of years, or in some other way commit computer fraud or some other type of fraud. This has an impact not only on your business but also on your other employees and those who count on your services or products.

To learn more about the risks of commercial crime insurance and how to protect your business, call us at Park Insurance. We’ll work with you to:

• Assess the risk potential for external or internal criminal actions
• Determine the precise insurance coverage you need for your business