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Commercial Crime Insurance

Commercial Crime policies are designed to protect businesses from variations of the following: Employee Dishonesty; Computer and Funds Transfer Fraud; Burglary, Robbery or Theft of money; Forgery or Alteration; or Theft of Client Property.

Employee Dishonesty

This section provides coverage for theft of property or money by your employees. Additionally, you can add ERISA Fidelity to protect your business from loss to Employee Benefit Plans resulting from theft by an employee.

Computer & Funds Transfer Fraud

This section includes coverage for loss of money or property relating to use of a computer to fraudulently transfer money out of your possession.

The definition of “fraudulent instructions” requires it to be done by someone not otherwise authorized to withdraw money (this is important consideration under “Notable Coverage Gaps” below).

Money & Securities: Robbery/Burglary/Theft (Inside and Outside premises)

This is usually broken out into more than one section, but it involves the stolen loss of money or securities either on or off your premises.

Forgery or Alteration

This section provides coverage for loss resulting from theft by forgery or alteration of checks, bank drafts or other financial instruments.

Theft of Client Property

This section provides coverage if your clients or guests sustain loss to their property or money by theft while on your premises.  It can also be written to include coverage off premises.

Commercial Crime: Common Coverage Gaps

Cyber Crime

Computer & Funds Transfer Fraud usually contains some gaps in coverage if the crime results from the employee or owner actually authorizing the transfer, then coverage may not be triggered under the traditional definition of “fraudulent instruction”.

You will need to purchase a Cyber policy to fill this gap or buy Crime coverage from a carrier who addresses and fills this gap in their policy form or via endorsement.

Definition of Employee

Managers, Directors, Agents, and Independent Contractors are NOT considered employees, which can result in gaps for Employee Dishonesty coverage. If you need or desire this kind of coverage, an endorsement is usually required.