Crime insurance is a type of policy that a business can purchase to protect itself from unlawful activity by clients, the general public, and its own employees. Here is a description of what is covered, along with some examples of acceptable crime insurance claims.
When a business falls victim to criminal activity, it files a claim with its insurance provider. If the company has stayed current on its premiums, losses of money, securities, and property are usually covered. The following items are not included in most policies:
- Legal expenses.
- Theft of data, secrets, or intellectual property.
- Salaries and other types of associated lost income.
Examples of Claims
Theft and fraud are the primary types of crimes covered. Here are a few examples of crime insurance claims:
- An unknown person stole money from an employee who was making the nightly bank deposit.
- Someone forged another employee’s signature on a business check and then cashed it.
- A hacker broke into the company computer system and transferred funds to another bank account.
- An employee unknowingly received counterfeit money in payment for merchandise.
A crime insurance policy is written based on known perils, which can vary from business to business. Talk to your insurance agent about customizing a policy that will mitigate the risks you face.