Just suppose one of your employees stole $2,000 from the petty cash drawer or stole a laptop computer from one of your clients...
What would you do as a small business owner?
Hopefully you talked to your InsuranceHub business agent and they helped you to get a crime insurance policy. Why do we say that? Simply put, crime-related losses are not typically covered by commercial property insurance. That raises a few questions:
- What is crime insurance?
- What does it cover?
- What kind of crime insurance policy do I need?
What is crime insurance & what does it cover?
Crime insurance, or "fidelity insurance," is a policy that protects you from the loss resulting from criminal acts, such as:
- Employee Theft of your money (up to $10,000 in coverage for damages per occurrence)
- Employee theft of your clients money or possessions: (Up to $5,000 of coverage per event)
- Forgery or Alteration (Upgrade your limit to $10,000)
- Inside the Premises - theft of money and securities (limited to $10,000 at your business premises or bank and up to $5,000 at your home.)
- Inside the Premises - robbery or Safe burglary of other property
- Outside the Premises
- Computer Fraud (up to $25,000)
- Funds Transfer Fraud (up to $25,000)
- Money Orders and Counterfeit money.
What kind of crime insurance policy do I need?
That depends on your business and thankfully your InsuranceHub agent is ready to help you to develop a policy that will meet your specific business needs.
For example you can customize your crime policy with endorsements like these:
- Theft or dishonesty: This protects you from theft of money or property and dishonest acts committed by your employees.
- On Site Premises theft: This protects your property inside your premises while you are open for business. For example it includes coverage for shop lifting and hold ups.
- Robbery off site of the business premises: This protects you in case your employees are robbed while working off your premises.
- Murder, rape, and other violent crimes: To cover losses due to violent crimes you can add an aggression insurance policy.
- Theft of securities or money: This covers theft or destruction of your money. It covers losses that happen inside your place of business or with an employee or owner off site of your business.
Many business owners, like Jack in our opening scenario, buy crime insurance to protect them from employee theft. This policy allows you to cover crime losses that are not insured under standard business owner's policies.
Some organizations buy crime insurance instead of a surety bond for covering their employees that work in client businesses or homes.