Crime insurance, otherwise known as commercial crime insurance, or fidelity insurance, is an important component of risk management, protecting your company’s assets against losses of cash or other assets due to theft or other criminal acts. This type of coverage is particularly important for small and medium-sized firms who might otherwise be severely impacted by a large financial loss arising from theft. Due to the ever-increasing use of the Internet to handle financial transactions, the importance of covering your company from potential threats should not be underestimated.
Components of a Crime Policy
The standard Insurance Service’s Office commercial crime policy contains the following eight insuring agreements:
- Employee theft
- Forgery and/or alteration
- On premises coverage theft of money and securities
- Robbery coverage on premises for safe burglary
- Off premises coverage
- Computer fraud
- Funds transfer fraud
- Counterfeit money and money orders
While commercial crime insurance affords protection for you against acts of your employees, if your business works with independent contractors or consultants, these contractors should provide evidence of third-party fidelity bond coverage for the benefit of your company. This will ensure you have protection against wrongful acts of those you hire on a contract basis.
Effective Risk Management
Whether your business is new or established, you have undoubtedly worked hard to get it to the point where it is now. Protect the financial well-being of your company’s assets by carrying crime insurance coverage. This type of coverage provides sleep assurance and lets you get on with doing what your business does best.