Commercial Fidelity/Crime Insurance

Commercial crime insurance, often referred to as crime coverage, is a type of insurance that provides protection for businesses against financial losses resulting from various types of criminal activities, such as theft, embezzlement, fraud, forgery, and other white-collar crimes. This coverage is designed to help businesses mitigate the financial risks associated with criminal acts committed by employees, third parties, or others within the organization.

Key Features and Components:

1. Coverage for Employee Theft: Employee theft is a common concern for businesses. Commercial crime insurance can protect against financial losses caused by the dishonest acts of employees, including embezzlement, theft, and other fraudulent activities.
2. Third-Party Fraud: This insurance can also cover losses resulting from fraudulent activities committed by third parties, such as customers, vendors, or other external individuals or entities.
3. Forgery or Alteration: Coverage often includes protection against losses incurred due to the forgery or alteration of checks, promissory notes, or other financial instruments.
4. Computer and Funds Transfer Fraud: Businesses today face cyber threats, and commercial crime insurance may extend to losses arising from computer fraud and funds transfer fraud. This can help protect against losses due to fraudulent online activities.
5. Money and Securities: Coverage can encompass theft, disappearance, or destruction of money, securities, and other negotiable instruments, both on and off the business premises.
6. Robbery or Safe Burglary: This type of insurance can provide protection against losses incurred in the event of a robbery or safe burglary.
7. Kidnap and Ransom (K&R) Coverage: Some commercial crime insurance policies include K&R coverage to protect against losses related to kidnapping, extortion, or ransom demands of key employees.