What is crime liability?
While standard property insurance policies provide some protection from criminal acts, oftentimes they do not cover losses resulting from employee dishonesty. Crime insurance deals with the limitations of other policies and extend protection to include the fraudulent activities of employees. Crime policies cover employee actions such as:
- Theft
- Embezzlement
- Forgery
- Computer fraud
- Credit card fraud
- Counterfeiting
Does my business need crime insurance?
No employer wants to believe that their trusted employees would steal for them. Unfortunately, the unpleasant reality is that employee theft is all too common. Because of their trusted positions, it is often far easier for employees to steal from a company than any outsider.
Also, once an employee begins stealing from their employer, it often continues over a sustained period and results in higher total losses.
Benefits of crime insurance
Coverage for the misuse of funds
It is likely that a number of your employees have access to company funds or financial information. in some cases, employees may abuse this access for personal gain. crime insurance can protect organizations form the misuse or illegal transfer of funds, ensuring your finances are safe from internal criminal acts.
Extortion safeguards
While it can be difficult to imagine, employees and outside actors can extort a company for funds by holding a director or officer hostage or through other illegal methods. Without crime insurance, your organization would have no means to recoup these losses, which could devastate your bottom line.
Reimbursement for computer fraud
Computers and emerging technologies have made it easier than ever for employees to carry out crimes against their employers. Crime insurance can provide a crucial layer of protection for any money or securities lost via computer fraud, which is an important piece to an effective cyber risk management program.
Insurance for goods in transit
Goods in transit are particularly vulnerable to employee theft and, in some cases, organizations may not notice anything has been stolen until it is too late. What’s more, if the theft takes place outside of the organization’s premises, it can difficult to prove, often leading to drawn out and expensive legal battles. Crime insurance policies can provide ample protection for goods in transit and reduce the likelihood of extreme losses whenever you send or receive products.
Coverage for forgery and alteration
In some cases, your employees have access to checks that they can easily alter for their own gain. effective crime insurance policies provide coverage for losses that result from the forgery or alteration of a check.
More management liability coverages
Directors and officers (D&O)
Covers losses caused by a director or officer’s alleged mismanagement or improper conduct.
Employment practices liability (EPLI)
Covers losses resulting from employment practices disputes, such as claims filed for discrimination, sexual harassment and wrongful termination.
Fiduciary liability
Covers losses resulting from mismanagement of employee benefit and pension plans.
Errors and omissions (E&O)
Covers losses resulting from negligent acts, omissions or errors.
