Whether employees steal from you, a thief robs your armored car, or you receive a forged check or fraudulent wire transaction, money theft happens in many ways. Crime insurance guards your company against damages from these particular crimes.
Money theft impacts businesses of all sizes and developments. Plus, it manifests in many ways. Sometimes employees steal from the cashbox, or a thief robs your armored car while it’s in transit. Other times, your company might receive a fraudulent wire transfer or a forged check. No matter how money theft happens, it’s often incredibly damaging to businesses.
Crime insurance is designed to protect the company from loss caused by certain illegal activities. Unlike many other commercial insurance policies, it has little to do with defending against lawsuits from third parties. This policy instead reimburses the company itself for losses of money, securities or other tangible property that it directly experiences.
Employees
Businesses with five or more employees tend to face more exposures to employee theft, fraud, and forgery.
Transactions
Companies that process a high volume of cash, check, debit/credit card transactions run the risk of money theft.
Seasonal Workforce
Part-time and seasonal workers increase a business’s vulnerability to crime.
Why you need Crime Insurance
Summary
According to the Association of Certified Fraud Examiners report that US businesses will lose an average of 5% of their gross revenues to fraud alone. Crime insurance steps in to help protect your company against such devastating loss.
Whether it’s employee theft or a sophisticated armored car heist, recovering from the deep cut of crime takes plenty of time and resources. Crime insurance speeds up recovery time by reimbursing for losses of money, securities, and other tangible property.
Reasons for getting Crime Insurance
Helps companies recover from cybercrime
Protects your company from employee theft
Safeguards against social engineering
Workplace Crime Loss
20bn
Businesses face a hidden risk: employee theft. Workplace crime by employees costs US businesses $50 billion annually.
Fraud Loss
3.5tn
Companies worldwide lose $3.5 trillion to fraudsters every year — and the figures continue to devastate small and large businesses.
Lost Revenue
5%
The Association of Certified Fraud Examiners reports that US businesses will lose an average of 5% of their gross revenues to fraud.
What Does Crime Insurance Cover
Crime insurance has evolved to cover much more than employee theft as “bad actors” have become more sophisticated. This policy is fundamentally designed to cover the theft of money; however, it covers more traditional methods of theft including robbery, burglary, and forgery.
Unfortunately, criminals now commit these crimes from the comfort of their home. In response, traditional crime insurance continues to expand to cover new types of theft as technology rapidly changes. For example, policies now cover social engineering, fraudulent instructions sent electronically or physically (telephone, fax, etc.) instructing banks to transfer your company funds to another account.
Phishing
Employee responds to a seemingly legitimate email and voluntarily provides enough sensitive information that allows someone to pose as that person to initiate a funds transfer directly or through another employee, also known as phishing.
Unauthorized Fund Transfer
Bad actor hacks into the CEO’s email and sends an urgent message to the approved person to make transfers requesting funds transferred to an account for a top secret deal.
Employee Theft
Employee inserts an infected storage device into a local network that allows the criminal enough access to information to enable the transfer of funds.
Crime Insurance Claim Examples
Here are some claim examples that illustrate what Crime insurance covers
A small business has one employee in charge of managing accounts payable and receivable. It’s revealed that the employee siphoned off over $100,000 of cash into dummy vendor accounts, hidden by a complex web of transactions over a period of 2 years. The embezzlement is discovered by chance after the employee was suddenly ill and not present to maintain the ongoing fraud. The claim was investigated and paid in full by the insurer.
A Fintech company closed up for the day and locked the doors. When they returned the next morning, the lock was busted and every single monitor, tower, laptop and hard drive in the office was stolen. Worst of all, every employee’s USB cords were gone. In the police report, the company estimated the total value of stolen property to be over $50,000.
Tim worked in accounting for a SaaS. He was hired by the company’s CEO, Jill, after being connected through their college’s alumni network. A couple of months in, Tim received an urgent email from Jill asking him to wire $50,000 to an account for the sponsorship of an alumni event. Tim didn’t notice the typo in the email address and never thought a criminal would scour his LinkedIn profile for personal info to exploit. Tim found out the next day that he was the victim of a spearphishing attack.
Crime Insurance FAQs
If an employee commits a crime after the insured knows about a previously committed crime, the loss is not covered.
Lose income, such as salaries and bonuses
Fines and penalties
Consequential loss, such as business interruption
Property damage caused by fire
Businesses of all sizes benefit from crime insurance. Plus, the premium amount will vary greatly according to multiple factors. Please contact us today for a quote.
Crime insurance is often a stand alone policy; however, it can also be endorsed on a policy
Unfortunately, employee dishonesty causes the most crime insurance claims. For this reason, Businesses with employees must protect themselves from this risk.
How it works
Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.
1
Get a quote
Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.
1
Get a quote
Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.
2
Pair with a specialist
No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.
2
Pair with a specialist
No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.
3
Stay one step ahead
To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.
Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.
3
Stay one step ahead
To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.
Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.
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Amit Patel
Tim worked in accounting for a SaaS. He was hired by the company’s CEO, Jill, after being connected through their college’s alumni network. A couple of months in, Tim received an urgent email from Jill asking him to wire $50,000 to an account for the sponsorship of an alumni event. Tim didn’t notice the typo in the email address and never thought a criminal would scour his LinkedIn profile for personal info to exploit. Tim found out the next day that he was the victim of a spearphishing attack.