Crime Insurance for Business Theft Protection

Business Insurance for Crime Coverage

Crime Insurance protects your business from financial losses resulting from criminal acts, including employee theft, forgery, fraud, and robbery. While you trust your employees and take security precautions, theft and fraud can happen in any business. This coverage provides financial recovery when dishonest acts target your business, helping you survive losses that could otherwise threaten your operations and financial stability.

Why Your Business Needs This

• An employee embezzles funds or steals inventory over time
• Someone alters checks or uses forged documents to steal from your business
• Computer fraud or funds transfer fraud drains your accounts
• Burglars break into your business and steal cash or property
• Social engineering scams trick employees into transferring money to criminals

What It Covers

Crime Insurance covers employee theft and dishonesty, including embezzlement and stealing money or property. The policy protects against forgery and alteration of checks, drafts, and financial instruments. Computer fraud coverage protects against electronic theft from your systems. Funds transfer fraud coverage addresses losses from fraudulent transfer instructions. Inside the premises coverage protects money and securities stolen from your business location. Outside the premises coverage extends protection when money is stolen during bank deposits or other business activities. Money orders and counterfeit currency losses are typically included.

Employee Dishonesty Coverage Explained

Employee dishonesty is often the most important component of crime coverage. This protects you when employees or managers steal money, merchandise, or property. Coverage applies whether the theft is a single large loss or repeated small thefts over time. The policy covers stealing by employees acting alone or in collusion with others. You must discover the loss during the policy period or within a specified time after the policy ends. Having documented procedures for cash handling, inventory control, and financial oversight helps support claims and may reduce premiums.

What's Not Covered?

Crime policies typically exclude indirect losses like lost income or business interruption resulting from the theft. Inventory shortages you can't specifically attribute to a covered cause aren't covered. Losses discovered after the policy ends beyond the discovery period are excluded. Theft by owners, partners, or directors may not be covered depending on the policy. Legal fees and costs of investigating the crime are often excluded. Losses from giving away property or voluntary parting with money due to schemes may be limited. Understanding exclusions helps you recognize when you need additional coverage or risk management strategies.

How Much Crime Coverage Do You Need?

The right amount of crime coverage depends on your specific exposures. Consider how much cash and inventory you typically have on hand. Think about your employees' access to funds and assets. Businesses with multiple locations or remote workers may face higher exposures. Your accounting procedures and internal controls affect your risk level. Companies with high-value inventory or regular cash handling need more protection. Review your coverage annually as your business grows and exposures change. Crime insurance is relatively affordable, making adequate protection accessible for most businesses.