Commercial Crime
Risk Management
Our team of experts is dedicated to providing you with a comprehensive assessment of your risks and quote comparison from our broad network of insurers while ensuring that you have the essential knowledge to make informed decisions on Commercial Crime insurance.
The Basics of Commercial Crime Insurance
Commercial crime insurance helps businesses financially protect themselves in the event of certain types of crime, including employee theft, forgery, and fraud. Many companies are required to have this type of insurance to protect their assets, which can be a valuable asset for any business. Different types of coverage are available under commercial crime insurance policies, and the specifics will vary depending on the policy. However, standard coverage includes loss of money or property, legal expenses, and business interruption. Purchasing commercial crime coverage is a vital way to safeguard your business against potential losses due to crime.
Key Coverage Provisions
Although Commercial Crime Insurance coverage may vary by insurer, crime policies generally help protect your company from risks, such as;
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Alteration or Forgery Coverage
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Worker Dishonesty Coverage
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Funds Transfer Fraud Coverage that includes ransom, extortion, or kidnaping coverage
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Computer fraud coverage
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Counterfeit Money and Money Orders Coverage
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Money and Securities Coverage
Strong organization internal audits, controls, and third-party CPA companies can reduce employee theft significantly. But unfortunately, even the most vigilant firms have reportedly sustained substantial multi-million dollar losses. Having the right Commercial Crime Insurance policy can look after your business/organization and safeguard it from corporate asset theft risk to more complicated cyber schemes.
Although employees are the most significant area of concern for organizations, it is essential to have commercial crime coverage because it generally also covers losses that specific acts of non-employees cause. They include;
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Negotiable instruments' alteration or forgery, including forging insured signatures on business checks
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Damage, destruction, or theft of properties like securities and money on the insured premises or anywhere else, e.g., while in transit.
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Fraudulent instructions to the business' bank to electronically transfer funds, claiming to be from the company/business (insured)
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Fraudulent manipulation of the company's (insured entity) computer system is like an online hacker transacting finances to an external account.
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Social Engineering Fraud
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Receipt of fake currency by the business (insured)
Coverage Trigger
Commercial Crime Insurance offers coverage in two situations;
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When the insured sustains a loss, that is often under a "loss sustained" form.
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When the business/company/organization (insured) discovers a loss during the policy period without considering the time it happened, this is usually under a "loss discovered" form, making these forms preferable.
Discovery Of Loss
The discovery of loss is triggered on the following two occasions;
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It is triggered when there is legal action against the business claiming acts/losses that fall within the coverage scope
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When the insured (business/company/organization) first learns of the facts, that would lead to a logical individual assuming a covered act/loss has transpired, even if all the facts regarding the loss are unknown yet
Typically, the insurer should receive written notice from the insured as soon as possible and practicable. And it should not exceed 30 days to 60 days after the discovery takes place. In most cases, businesses present proof of loss to their respective insurers within 4 to 6 months after the act's discovery.
What’s Typically Not Covered?
Commercial Crime insurance policies vary from one insurer to another. But the following are items that Commercial Crime Insurance typically doesn't cover:
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Potential income loss, business interruption, or other consequential or indirect losses
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Losses that the insured's workers cause after it learns of a crime that the employee has committed
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Legal expenses
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Data thievery, including theft of the business' client lists, data, trade secrets, or intellectual property
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Expenses sustained in gathering proof of loss. However, Commercial Crime Insurance can cover such costs if investigative or claims expense coverage is included in your policy
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Property damage that fire could cause
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Penalties and fines
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Losses that are associated solely with inventory records
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Any associated lost income like bonuses and salaries, fees, and commissions
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Crimes that business partners could commit
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Crimes that employees could commit in coordination with business partners
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