What is a Commercial Crime Insurance Policy?


Nov 2, 2020

Why is Commercial Crime Insurance Important to Have?

Commercial Crime Insurance can help provide financial coverage for employee dishonesty and theft, fraudulent checks, counterfeit money and credit card fraud. This policy is needed because claims relating to money, finance or forgery are not usually covered by your Commercial General Liability Insurance. Commercial Crime Insurance is needed for any business - regardless of size and industry. Even if you have all the right preventative measures and a risk management program, theft and internal employee crime can still happen; a Crime Insurance policy acts as an important backstop - making it a necessity for any business. Employee theft is an unsavoury thought as many of us view our colleagues and co-workers as a family but unfortunately, it can happen. In some scenarios, it only takes one act of theft or forgery to financially shut down a business if they don't have the proper insurance to support. We elaborate more on what is a Commercial Crime Insurance policy, common claim examples and what could happen if you don't have Crime Coverage.

What is a Commercial Crime? 3 Common Commercial Insurance Claim Examples

Employee Theft:If an employee steals from the company, for example:

  • The shipping managers for a manufacturer conspired to load trucks with merchandise for later sale at flea markets and small retail shops, while taking the money for themselves - a $1.1M value.

Funds Transfer Fraud: If your company is tricked into sending money from your accounts by fraudulent instructions without your knowledge and consent, for example:

  • Four employees defrauded their employer by using a phony billing scheme. The employees made up fake vendors and submitted bills for work performed by other real vendors. The employees stole $167,000 worth of payments for their own use.

Credit Card Fraud: If your company credit card is stolen, copied, or used without your knowledge, for example:

  • An employee was given the company credit card to handle miscellaneous purchases at the satellite office. He made some purchases using the card but they were not related to the business and were actually items that he wanted to use in his personal home. Upon review, a manager realized the purchases were not business related and the employee was caught, but not before racking up a $47,000 bill!

How Does Commercial Crime Insurance Work? How does Crime Insurance Help In Each of Those Scenarios?

In all of the above scenarios we just mentioned, a Commercial Crime Insurance policy would provide coverage to protect for the loss of money, security and property.

What Happens If You Don't Have Crime Insurance Coverage?

Without crime coverage, you are exposed to losses from:

  • Employee theft of client property

  • Loss of money, securities and other property on your premises

  • Loss of money, securities and other property while in transit

  • Loss from forgery or alteration of credit cards and other instruments

  • Loss from computer crime

  • Loss from funds transfer fraud

Like previously mentioned, these losses could result in a huge financial drain that, without insurance, you would have to cover for using your own personal or business finances. Sometimes these losses can be substantial enough to close down a business.

Having the proper insurance for your business needs should be part of any risk prevention plan or system because it acts as fail-safe. As a business owner (and even in life!), we know that the best-laid plans need back-up plans. Not only is having a Commercial Crime Insurance necessary but so is having a Commercial Crime Insurance policy that is actually suited for your business and its specific needs. At Foxquilt, we provide smarter, tailored business insurance customized to your unique needs with savings too - up to 35% off of your premiums. Our team of insurance professionals will review your situation, provide you with business insurance built for you, and support you every step of the way. Get started on your insurance quote today with Foxquilt.

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