Commercial crime coverage protects businesses from employee and third-party theft of money, securities and other property. This includes employee theft, computer and electronic funds transfer fraud, fraudulent impersonation and clients’ property. As part of our holistic review of your business, we can help you determine if crime coverage makes sense, and if so, help you find the right policies to fit your needs.
Commercial Crime Insurance – Frequently Asked Questions
- What is commercial crime insurance, and what does it cover?
Commercial crime insurance protects your business from financial losses caused by theft, fraud, forgery, and other criminal acts committed by employees or outside parties. It fills coverage gaps left by standard property and liability policies. - Why would my business need crime coverage if I already have property insurance?
Property insurance covers physical damage and some types of theft, but it doesn’t cover internal crimes like employee embezzlement or social engineering fraud. Crime insurance specifically addresses financial dishonesty and fraud-related losses. - What types of crimes are covered?
Common covered incidents include:
- Employee theft or embezzlement
- Forgery or alteration of checks
- Computer fraud and wire transfer fraud
- Theft of money or securities
- Robbery or burglary
- Social engineering and phishing (optional coverage)
- Does crime insurance cover employee dishonesty?
Yes. One of the core components of a crime policy is protection against losses caused by dishonest employees, such as embezzlement, misappropriation of funds, or inventory theft. - Does it cover cybercrime or phishing attacks?
Some crime policies offer limited coverage for cyber-related crimes like social engineering or fraudulent transfers. However, broader cyberattacks and data breaches are better covered by cyber liability insurance. - Is commercial crime insurance required by law?
No, it’s not legally required, but it’s often strongly recommended—especially if your business handles large amounts of cash, has multiple employees managing finances, or deals with sensitive client data or transactions. - What’s the difference between a fidelity bond and crime insurance?
A fidelity bond is a type of guarantee that protects against employee dishonesty (usually required by contracts or law), while crime insurance is broader and voluntary. Many fidelity bonds are simply simplified crime insurance policies. - Does commercial crime coverage extend to independent contractors or vendors?
Typically, no—unless specifically endorsed. Standard policies focus on W-2 employees. If third-party crime risk is a concern, ask your agent about endorsements that expand coverage. - How are crime insurance premiums calculated?
Premiums are based on business size, number of employees, amount of money handled, prior losses, internal controls, and industry risk. Businesses in finance, retail, and nonprofits often face higher premiums due to elevated exposure. - How can I reduce my risk of commercial crime losses?
- Separate financial duties (no one person should control all money functions)
- Use dual approvals for wire transfers or large payments
- Reconcile bank statements regularly
- Conduct background checks for financial roles
- Implement cyber-awareness training for staff
