As a business owner or manager, you need to ensure that your company is protected from crime. Unfortunately, even the best security measures and most stringent hiring procedures cannot prevent every potential business crime scenario. The Association of Certified Fraud Examiners reports that U.S. businesses are liable for more than $400 billion each year through fraud and abuse alone, and small businesses are especially vulnerable. A typical commercial property insurance does not generally take crime-related losses into consideration, so many businesses turn to a commercial Crime Insurance policy for additional protection.
Crime Insurance Coverage
Commercial Crime Insurance is a type of insurance policy that can protect the property, operations, and reputation of any business. This type of insurance can cover money and securities, the theft of your assets or a client’s assets by an employee, computer and funds transfer fraud, and forgery or alteration. However, it is important to keep in mind that it does not cover your own actions or those of your partners.
Burglary or Robbery Coverage
Burglary and robbery are two very big concerns for many businesses. Commercial Crime Insurance will protect the property inside your premises during business hours, and this overage extends to incidents where you or your employees are robbed while carrying out business off-site.
Computer Fraud Coverage
This type of insurance will protect against any losses that arise due to computer fraud or funds transfer fraud. This may occur via scams such as phishing or ransomware that involve using a computer to fraudulently transfer funds, securities or other types of property.
Employee Dishonesty Coverage
This offers you protection against any dishonest acts that are carried out by your employees, including the theft of property or money. This might also include damage made by an employee to your business’s property.
Forgery or Alteration Coverage
Forgery or alteration coverage protects against incidents where checks are fraudulently altered, signed, or written. For example, if a bookkeeper altered a check after it was signed and made it payable to their own account instead of that of the business, this type of coverage can prove useful. It will also cover any legal fees for defense if a lawsuit is filed against your company for refusing to pay for a forged check.
Theft of Money & Securities Coverage
This coverage will protect you against the theft, destruction or disappearance of your money or securities within your business property as well as while working off-site.
Who Should Acquire A Crime Insurance Policy?
A Crime Insurance policy is especially important for businesses that deal with cash, credit card payments or online payments. In addition, if your business holds inventory or stock that is vulnerable to theft and/or has a vault or safe on site, a Crime Insurance policy is a good idea.
This type of insurance is suitable for businesses of all sizes, but small businesses are the most vulnerable to business crime, partly because they tend to have fewer personnel in charge of safety and auditing procedures. In addition, even small losses can be devastating to smaller businesses.
Reach Out To An Experienced Business Insurance Brokerage
Unfortunately criminal activity not only occurs outside your business, but can also take place within your business from your own employees. In the event of internal criminal activity which can result in financial losses, it is important to acquire a Crime Insurance policy. For more information or to acquire a policy, please give our experienced business insurance brokers a call today at 888.971.6304 or request a quote online today.