Commercial crime insurance protects the insured against a loss of assets due to specified types of criminal perils. A “loss of assets” not only includes tangible objects of value, but also confidential information. Similar to property insurance, this coverage is first party as it addresses losses the policyholder may suffer directly.
Often referred to as a fidelity bond, commercial crime insurance typically includes protection against burglary, theft, disappearance, forgery or alteration, and other fraudulent acts, yet is most often purchased to insure an organization for losses caused by dishonest acts of its employees. Addressed within the Employee Dishonesty coverage section of the policy form, an act of this nature is committed by an employee acting alone or in collusion with others and must involve intent to cause loss or to obtain financial benefit.
In conjunction, additional coverage can often be added via endorsement or purchased on a stand alone basis that protects against kidnap, ransom, and extortion. Chivaroli & Associates can assist your organization in determining the appropriate crime insurance coverage needed.