Commercial Crime Insurance
The Basics of Commercial Crime Insurance
Commercial Crime insurance can help protect your company from significant losses caused by both third parties or internal employees. It provides coverage for loss of money or other assets against theft, fraud, forgery, burglary, and more.
First-party coverage protects your business from its own losses that occurred as a result of some type of criminal activity. Third-party coverage protects your business if another business or entity claims that a criminal act perpetrated by your business caused them direct losses.
Although strong internal controls, audits, and a good outside CPA firm can greatly reduce employee theft even the most vigilant companies have sustained significant multi-million dollar losses. According to a recent report, companies around the globe lost an estimated $4 trillion to fraud in 2017. The right crime policy can safeguard your business from the risk of corporate asset theft to more sophisticated computer and online scheme
Commercial crime insurance provides protection from financial losses related to business-related crime, including theft by employees, forgery, robbery, and electronic crime.
While strong internal protocols can help a company avoid fraud, dishonest employees and external fraudsters can circumvent the security of even the most well-run companies and ones with the most robust controls, leading to potentially substantial financial losses.
Although employees remain the greatest area of concern for organizations, a crime policy generally also covers losses caused by specific acts of non-employees, including:
- Theft, damage, or destruction of money, securities, and/or other property both on the insured’s premises or elsewhere (for example, while in transit).
- Forgery or alteration of negotiable instruments, including forging of the insured’s signature on business checks.
- Fraudulent manipulation of the insured’s computer system, including a hacker transferring funds to an outside account.
- Fraudulent electronic funds transfer instructions sent to the insured’s bank purporting to be from the insured.
- Receipt of counterfeit currency by the insured.
- Social engineering fraud.
The consequences of any of the above crimes can be financially devastating for companies and lead to severe reputational harm, making crime insurance an essential part of a company’s arsenal. Additionally, the Employee Retirement Income Security Act of 1974 (ERISA) requires any person handling funds of a qualified employee benefit plan to be bonded, a feature that is typically included in a commercial crime policy.
Hirsch Insurance Brokerage has the knowledge, resources and industry relationships to build an insurance solution that meets the unique needs of each of our clients. We offer our exceptional service guarantee combined with a vast selection of Professional Liability (E&O) Insurance products to meet your business needs. Our products offer broad coverage and competitive premiums to ensure we are staying ahead of our competition while putting our clients first. Remember, not all E&O policies are created equal and neither are the insurance carriers. Let our experience make the difference for your business.
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