Regardless of their industry or size, organizations are susceptible to business-related crime, even with robust security measures and risk management practices in place. Commercial crime insurance can provide essential coverage for these events.
The team at US E&O Brokers in Houston, Texas, can help your business analyze its insurance needs and assist you in securing a commercial crime policy. Contact us today to get started.
What Is Commercial Crime Insurance?
Commercial crime insurance is a type of business insurance that offers coverage if employees or other third parties engage in unlawful acts against your business that result in financial losses. It can provide crucial monetary aid following a covered incident.
Other standard insurance policies (e.g., commercial property insurance) may not provide full coverage if business-related crimes impact your business, but a commercial crime insurance policy can help fill this gap.
What Does Commercial Crime Insurance Cover?
Commercial crime insurance may provide coverage for business-related crimes, including the following:
- Employee theft of money or property
- Forgery and alteration
- Funds transfer fraud
- Computer fraud
- Good faith acceptance of counterfeit currency or counterfeit money order
- Destruction of money or securities
Coverage for other dishonest or illegal acts and crimes committed by temporary employees, volunteers or others may be available through other policies or endorsements.
How Does Commercial Crime Insurance Work?
Commercial crime insurance functions like other insurance policies: A policyholder pays a premium to an insurance company, and in turn, the insurer provides coverage for perils covered by the policy.
There are two types of commercial crime policies with different coverage triggers:
- Discovery coverage policy—This type of policy may provide coverage for losses that the policyholder discovers during the policy period, regardless of when the crime occurred.
- Loss sustained coverage policy—This type of policy may provide coverage for losses that both occurred and were discovered during the policy period. These policies may allow an extended period (e.g., up to one year) for a loss to be discovered and reported after the policy has ended as long as specific criteria are met.
Commercial crime insurance may be in effect at your place of business, when your employees are working off-site and when your goods are in transit. Reach out to your agent for additional information on terms, limits and exclusions.
Contact Us to Get Commercial Crime Insurance
Each business’s risk profile is unique, and our agents can help determine your insurance needs. Contact the knowledgeable professionals at US E&O Brokers to get started on securing the right policy for your operations.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.