Get to know Comprehensive Crime Insurance ~ Insurance Academy

Credit Picture: NorthStar Insurance Services

In an increasingly sophisticated commercial society, more businesses are at risk of suffering losses through criminal activities. The traditional threat of robbery and theft is being taken over by ‘white collar’ crime events and in today’s world the focus is on cybercrime. The various categories of fraud risk exist everywhere, regardless of the type of industry or the scale of the business.

General crime insurance claims cover employee dishonesty, embezzlement, forgery, robbery, internet or cyber fraud, fund transfer fraud, forgery and other criminal acts. Schemes and frauds are broad and take advantage of weak risk management, auditing, and compliance levels.

The following examples are common fraud events that impact all companies:

• An employee who founded a stealth vendor or a stealth employee just to steal money from the company
• Transfer funds without permission
• Employees colluding with external parties for asset misappropriation
• The company accepts counterfeit money
• Theft of inventory while in transit or on site (warehouse), often involving collusion of employees and third parties
• Computer hacking and cyber fraud
• Fraud expense reports from employees
• Falsification of financial documentation such as checks, bank drafts, telegraphic transfers & letters of credit.

With the increasing sophistication of the risk of fraud, dishonesty, Money Insurance such as Cash in Save or Cash In Transit is no longer an effective risk transfer solution.

Feature Main Insurance
Crime Insurance or criminal crime insurance protects the company from loss of money, securities, inventory, or other property as a result of fraudulent events.

Crime Insurance provides protection against:

• Immediate loss from dishonest or fraudulent acts committed by your employees or third parties
• Loss of money or property either at your place of work or on a trip
• Counterfeiting of negotiable instruments such as checks and for losses arising from third parties
• Computer crimes include fund transfer fraud.

For insurance brokers, compiling a Quotation Slip for Crime Insurance “according to the needs” of the insured requires a great deal of experience and expertise, bearing in mind that different insurance companies have subtle variations of wording between employee dishonesty and language theft can have a significant impact on insurance coverage.

Afrianto Budi

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