Business Crime Insurance
A Business Crime Insurance Policy addresses theft or destruction of money or assets, or dishonest acts of employees and others who have custody of property. A commercial crime policy can typically cover losses associated with employee dishonesty, forgery and alterations, computer fraud, fraudulent funds transfers, kidnap and ransom, extortion, money and securities, and counterfeit money.
What you need to know about Commercial Crime Insurance:
Business crime coverage is written on either a “discovery form” or a “loss sustained” form. Under the discovery form, coverage is provided only for losses that are discovered during the policy period. Under a loss sustained form, coverage is provided for the loss that was sustained when it occurred.
Employee theft/dishonesty is the most common coverage provided by a business crime insurance policy. This provides coverage in the case that an employee takes money, securities, stock or materials unlawfully from the named insured
The owner, his/her partners and members of an LLC are excluded from coverage. Dishonest acts of the named insured will not be covered. Dishonest acts of an employee who has knowingly committed dishonest acts in the past will not be covered either.
Coverage for client’s property that is in your care, custody or control is generally excluded. There is an endorsement that can provide employee theft coverage for property that the named insured’s client owns or leases or that they hold for others. This endorsement can be restricted to a loss caused by an identified employee.