A commercial crime policy is designed to protect a business or organization from financial losses caused by crime related activities. In most property policies there are limitations of coverage in relation to loss of monies or securities. A crime policy can often fill in the gaps of companies that tend to have more cash or specialized property on hand, such as restaurants, convenient stores, or jewelry stores.
There are several different types of crime coverages that can be endorsed on a policy including but not limited to:
Employee dishonesty coverage refers to any theft of securities, cash, or property by an employee is excluded under all crime forms unless employee dishonesty coverage is endorsed on your policy. This endorsement will protect an employer from a loss in which they discover that an employee has been stealing from them. One unique aspect of this coverage is that if the employee steals from the employer over a period of time but doesn’t get caught until after many incidents most carriers will consider this as one “occurrence” and will treat every incident as one claim. There are several conditions that need to be met in relation to this coverage by the employer in the discovery of such a claim.
Funds that are withdrawn from an insured’s account by a third party hacking into their computer system is considered a computer fraud coverage incident.
Just as it sounds, this coverage can include any monies, securities, and property that are lost due to theft, disappearance, or destruction will be picked up under this coverage. In many cases there may be no trace of theft or break-in but the money that was kept on premises is no longer there.
Monies, securities, and properties that are taken by a third party by burglary or robbery is picked up under this coverage. If a cash dependent business is located in a higher crime-rated area this is a coverage that is often recommended.
One of the most common types of claims related to this coverage is the alteration or forgery of checks that are accepted for payment by the insured from a third party. If it is later determined that the money paid for the insured’s product or service is not valid and the insured cannot recover the losses, this coverage will apply.
Employee Retirement Income Security Act (ERISA) liability covers the wrongful acts relating to the fiduciary responsibility of the individual handling the company’s pension funding and other employee benefit plans.
If you are interested in obtaining commercial crime coverage for your business or organization with one of our many reputable insurance carriers, our team of licensed and experienced agents will be happy to help you. Call us today toll free at 1-800-686-2147.