If you own a business, buying commercial crime insurance is just one of the many different types of commercial insurance you can choose from as part of your overall insurance package. Here, we explain everything you need to know about commercial crime insurance coverage, including what it will and will not cover, along with who needs to buy it.
When you buy commercial crime insurance coverage, this could cover any crimes that are committed by employees or third parties. It can help to safeguard your business from any significant losses in the event of a crime.
Third-party coverage can protect your company if another entity makes a claim that your business was involved with a crime that caused them a loss. First party commercial crime insurance coverage can safeguard your company from any of its own damages or losses that arise as a result of criminal activity.
Buying commercial crime insurance can mitigate the risks associated with any losses from crime. It can provide peace of mind and reassurance at a time of uncertainty for your company.
If your business has any type of valuable assets, then buying crime insurance is a good idea. There are certain types of companies that should always purchase this type of coverage; here are just a few guidelines that are in no wat exclusive but provide you with a good indication of whether you should buy commercial crime insurance.
If you have property insurance or commercial liability coverage, then it’s important to remember that these policies will not usually cover any losses from a crime. In most cases, unless you pay for an endorsement, things such as employee theft will not be covered, and if third-party crimes are covered, there may only be a limited amount of coverage included.
As an unwritten rule of thumb, if you deal with data, customers, digital transactions and/or sensitive transactions, you should buy a commercial crime insurance policy.
Business crime insurance will cover any losses that arise from crimes committed by third parties, employees, customers, and/or vendors. Here are some practical examples of what a business crime insurance policy can cover you for.
This may include the theft of any checks, notes, cash, and other such securities.
This is one of the most common criminal acts that businesses face, and it can provide you with a reimbursement of any lost cash.
This is an element of commercial crime insurance coverage that you will usually need to pay an additional amount for. It is a popular choice with cleaning companies, agencies, and moving companies.
A commercial crime may involve assets that are not cash, and it can happen on and off your business premises.
This is usually relevant if a business gives employees access to sensitive information or financial records.
If you suffer a loss due to any forgeries or counterfeit money, then a crime insurance policy can cover you for this loss.
If there is any unauthorized use of your company computer systems, this could be covered under computer fraud. It is not the same as cyber liability insurance, but if one of your employees was to hack into your payroll system without being authorized to do so, this might cover any lost funds.
This element of a commercial crime insurance policy is not as common as some of the other included coverages, but it can happen. It does not include cybercrimes where an unknown will hack into your systems and demand a ransom. But, if an employee or owner of the business is kidnapped and a ransom payment is requested, this is one such example of a covered event under this section.
Commercial crime insurance will provide coverage for computer fraud, but it will only cover limited losses that involve a theft by an employee or a third party. If your company suffers a data breach, this is not covered by business crime insurance; you will need to buy a cyber liability policy to get this coverage.
Understandably, most modern businesses operate an e-commerce element, and for this reason, it is wise to buy review both cyber liability insurance and crime insurance policies.
As with most types of commercial insurance, there are a number of critical factors that will impact the price you pay. Some of the metrics used to assess your risk may include those listed below.
If you want to buy business crime insurance, you should always speak with an expert commercial insurance agent to get quotes for the best level of coverage for your individual business needs. They can help you understand the terms of the policy and offer guidance about the right level of coverage and limits for your company.