Is a Crime Policy The Same as a Fidelity Bond?

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What is a Crime Insurance Policy?

In today's world, it is a sad fact that theft, or deceitful acts, are a part of doing business. As a business owner, you are at risk for theft, fraud, forgery, and other terrible acts committed by not only outside sources such as customers but also your very own employees.

Some ways that internal or external forces can commit these acts is by simply stealing cash or your business personal property, committing forgery or alteration, computer fraud, extortion, embezzlement, and credit card fraud. These are just a few of the ways that criminals have come up with to try to take your business down. Crime insurance was developed to protect your business from these evil forces by reimbursing you for these vast, sometimes devastating, losses.

What is a Fidelity Bond?

A Fidelity Bond is a type of Crime insurance that is often required by some states for you to even obtain a business license. The primary purpose of a Fidelity Bond is to provide protection for you, and even your customers, from acts of fraud committed by your employees. You may have also heard of this referred to as Employee Dishonesty. The biggest claim we see in regards to Fidelity insurance is monetary theft. While you may think that your employees are your family and they would never steal from you, it is more often than not the ones you trust the most that end up being the thieves.

What would happen to your business if you found out one of your employees stole money from you? Or maybe even worse, from your customers? Let's say you send your employee out to a customer's home to complete some work, and they end up missing some cash and jewelry. You will want to have a Fidelity Bond to reimburse the customer quickly. Otherwise, they could tarnish your name in the public eye. It's not just the monetary loss you have to keep in mind.

What are the Key Differences Between Crime insurance and a Fidelity Bond?

While a Fidelity Bond and Crime insurance can be the same, sometimes they can be different depending on the insurance company.

  • Most of the time Crime insurance can offer higher limits
  • A Fidelity Bond can help to reimburse customers
  • Crime insurance is often an endorsement on a Commercial Package policy while a Fidelity Bond is separate.

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What are the Different Types of Crime Insurance?

Crime insurance refers to a vast array of insurance coverages. Some of these include Employee Dishonesty as discussed here, burglary, robbery, forgery, fraud (computer or credit card), and destruction of physical money are a few.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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