Crimes happen, and sometimes they happen at your business. Whether it is from employees or outside criminals, it’s important to understand what your current business owner policies cover, and where you need additional crime insurance.
Points of Coverage
The coverages below may or may not be included in specific policies (such as the Business Owners Policy), and may require additional riders or upgrades to provide all of these coverages. Certain states may not provide these coverages.
Employee Dishonesty
This term covers damages caused by dishonest acts (theft of money, securities, or property) by a currently or recently employed individual. So if an employee slips some cash from the register, tickets to your events, or flitches a computer monitor, you’re covered.
Money and Securities
Of course, your employees aren’t your only concern when it comes to crime, or perhaps even your biggest one. This coverage is more extensive, and protects business assets (money and securities) from theft or disappearance from your business’s premise, home, or bank.
Robbery and Burglary
Of course crime coverage also protects your property from losses incurred from robbery (theft with the threat of force) or burglary (breaking and entering). This or additional polices may cover kidnap, ransom, and extortion coverages.
Client Property
This coverage extents protection to your client’s property. If one of your employees steals a client’s money, securities, or property at the clients or your premise, this insurance will compensate them. A good insurance to help avoid scandal and bad client relations and legal action.
Computer and Transfer Fraud
Physically stealing you or your client’s data isn’t the only way someone can steal from your company. If an employee or someone else uses a computer to transfer money, securities, or other property, or illegal transfer of funds using a financial institution, this coverage applies.
Forgery or Alteration
Another type of theft is the forgery or alteration of financial instruments, such as a counterfeit check from your business or the alteration of a legitimate check for financial gain.
What is Not Covered
There are also instances and exemptions to the various crime coverages. Again, these may vary by policy and by state.
Owners and Partners
Crimes committed by those in your company that are not employees (i.e. you and your partners) are not covered under points over coverage by crime insurance. Likewise if an employee commits a crime with aid or knowledge of you or a partner, it will not be covered.
Third Party Losses
While these coverages will protect your losses due to these events, they will not provide coverage for third-party liability that may occur due to the crimes at your business.
Specific Occupations
There are certain industries which are exempt from getting this coverage (though other specialized policies may provide similar coverage). These include financial institutions and those in the financial industry, and attorneys or claims adjusters.
Want to learn more about commercial crime coverage for your business? Contact TJ Woods Insurance Agency. We can provide you information and a free quote on all types of personal and commercial insurance.
