No matter how hard a company may try to hire trustworthy employees and establish internal security protocols, there is always the potential for theft to occur. Sometimes employees are involved, but more recently, there has been a rise in cybercrime. Commercial crime insurance works to offer protection for the company’s securities or cash, as well as the client’s money and assets left In possession or control of the company.
What Does It Cover?
Crime insurance is usually divided into several areas of coverage, with comprehensive policies addressing the following areas:
- Employee Theft
- Fraudulent Money Orders
- Counterfeit Money
- Wire Transfer Fraud
- Assets/Monies in Transit
- ERISA/Employee Dishonesty
- Forgery & Alteration
- Theft of Client’s Property of Securities
Depending on your company’s areas of operations, you may not need extensive coverage in each these areas. Different brokers and carriers may have bundling options available where the limits are uniquely tailored the higher areas of risk.
If you are confident in your hiring ability and the integrity of your employees, consider the statistic that US companies lose over 40 billion dollars each year because of employee fraud. Carrying a commercial crime insurance policy can be the difference between successfully resolving an incident of theft financially and having to close the doors of your business due to the financial havoc it wreaked.