Crime Insurance

Crime is one of the top causes of loss for modern businesses. Crime Insurance can protect your business from both first party risks and third party accusations of crime arising from your business. First party coverage is insurance for direct losses to the business from a covered criminal act.

Third party coverage is for accusations from others that a criminal act related to your business caused a loss. A common circumstance is an accussation of theft by your employee of another's property.

This kind of business insurance includes 8 Insurance Service Office (ISO) insuring agreements:

• Alteration or Forgery
• Employee Theft
• Theft of securities and money inside the business premises
• Safe burglary or robbery inside the business premises
• Theft outside the premises
• Funds transfer fraud
• Computer fraud
• Counterfeit money and Money Order fraud

Crime Insurance is necessary for all business sizes and types. In fact, crime inside the office is almost never a one-time incident. Once an employee develops the habit of stealing, it is very hard to stop it.

In addition, an employee committing criminal acts can influence other employees to do the same.

Your Business Crime insurance is designed to protect your business first and foremost. If your employees steal from you, a third part commits robbery or theft, or you are robbed on the way to the bank your business will be reimbursed.

Your Employees n addition to your business your employees are covered for robbery while they are doing business off your premises, such as at a jobsite. It also covers your employees for destruction of money and securities off site.

Crime Insurance will come in handy if your business:

• Is a small to medium-sized business with limited resources to spend on security
• Engages in cash, credit card, or check transactions
• Hires part-time employees or volunteers
• Has inventory, stocks, and products that can easily be used and carried out by employees
• Allows employees to handle financial records and customer data
• Does not have a good security system

While it may be difficult to think of the reality that your employees, even if they are family members, would steal from you, it is the case. The most common claim on a crime insurance policy is employee dishonesty. Unfortunately, it is often employees that are related to, or very good friends with, the business owner.

Crime insurance is different from a Fidelity Bond as a bond is required by the Employee Retirement Income Security Act to insure against dishonesty when it comes to retirement plans that are handled by someone within your business. Crime insurance is not required by law and covers employee dishonesty, theft of money and securities, and fraud.

If you or your employees go to customer's homes or places of business to do your work, this is where third party crime coverage comes in. It will protect you from claims that you or your employees have stolen from the customer while on their premises completing your work.

This type of insurance is usually customized to suit the needs of the business. Limits are computed based on maximum possible losses and budget. Crime Liability Insurance is a must-have for all businesses especially for those that have employees, suppliers, are computerized, and manage sensitive information.

Government seizures Government seizures are not covered by Crime Liability Insurance.

Loss of income Loss of income is not covered by Crime Liability Insurance.

Employees Part-time employees who are not working on your premises, independent contractors like security guards, cleaning staff and employees who have been caught previously committing a dishonest act are not covered by Crime Liability insurance.

Legal losses Damages from lawsuits, indirect losses (such as business interruptions), legal expenses and criminal acts committed by company owners or top management are not covered by Crime Liability insurance.

War In case of war, Crime Liability insurance does not apply.

The cost of Crime Liability Insurance will depend on several factors such as:

• Number of employees
• Annual revenue
• Presence or lack of office security
• Presence of irreplaceable items on the office premises
• How much insurance you want to buy often depends on how well you know and trust your employees.