Commercial Crime (Employee Dishonesty)

Commercial crime insurance protects business owners against dishonest acts by employees. Dishonest acts are not covered under general liability, professional liability, or property insurance. Covered events include damage to business property, employee fraud, and theft of your property or client’s property.

Business owners often purchase commercial crime coverage to either protect their business from the financial hardship associated with employee theft, or they buy coverage to protect their customers when they manage money or securities on their behalf. In many instances, business owners need the coverage to assure their customers of financial protection from dishonesty or theft.

What is Commercial Crime Coverage?

Commercial crime insurance is a type of fidelity insurance. This type of coverage is often associated with an insurance bond because its a “promise to pay” given by the insurance company in the event of a triggering claim.

General Liability and property insurance does not provide coverage for employee theft, forgery, or dishonesty .

Commercial crime insurance generally provides coverage for money, securities, and property against employee acts regarding theft, robbery, fraud, extortion, and forgery. A policy can pay for money or valuable items taken by employees or it can pay for losses caused by dishonest acts such as embezzlement.

Commercial Crime Coverage Includes the Following:

✓ Employee Theft
✓ Forgery and Alteration
✓ Inside Premises Theft- Money
✓ Inside Premises Theft- Robbery
✓ Outside Premises Theft
✓ Computer Fraud
✓ Funds Transfer Fraud
✓ Money Order and Counterfeit Fraud

Who Needs a Commercial Crime Policy?

Almost every business owner needs to be concerned about employee dishonesty and theft both at work and at your customers’ locations. Businesses that handle cash daily or provide services after hours are at a higher risk for claims than many other industries. Companies who provide financial services also have a higher exposure to an incident.

Commercial Crime Insurance Quote

General liability Shop offers affordable quotes for commercial crime insurance. Our national agency represents more than 35 insurance companies offering business liability coverage. We shop your commercial crime insurance so you don’t have to.

Contact one of our commercial liability Specialist today at (800) 900-8657 to see if your business qualifies for affordable an affordable umbrella policy. Or get started with an online quote.

What is Excluded Under a Commercial Crime Policy?

Commercial crime coverage almost always excludes dishonest acts by business owners, corporate officers, and partner from coverage. It may also exclude claims where the employee acts in conjunction with an owner or officer with regard to the dishonest act. Commercial crime insurance is designed to make the business owner whole after an employee is dishonest.

Examples of Commercial Crime Policy Coverage

Example 1: Employee Dishonesty
If your business keeps a petty cash drawer or has cash on hand for transacting business you may benefit from having a commercial crime policy. For example, if one of your employees closes shop that night and steal $,2000.00 from the drawer, your business would be covered by a commercial crime policy.

Example 2: Forgery
If your business receives checks and credit cards from your customers you could benefit from a commercial crime policy. For example, one of your staff manages accounts receivables and is supposed to handle banks deposits every other day. Instead of depositing all the checks received by customers, she alters a few of them and deposits in her own account. You would have coverage.

Example 3: Employee Theft
If your business commonly provides services at your customers’ locations then you would likely benefit from having a commercial crime policy. For example, your employees provide janitorial services after hours for other small businesses. One of your customers has an iPod stolen from their premises the same night your staff was cleaning. Your business would be covered in the event of this type of claim.

* Limits of coverage amounts are applicable and vary by each commercial crime policy.