Crime Insurance

Crime and Fidelity

Crime and
Fidelity

What is Crime Insurance?

The Hiscox Crime Insurance policy provides extensive and flexible coverage for a broad range of fraud risks. In the face of ever-changing fraud exposures, Hiscox gives organizations peace of mind. Financial institutions, private businesses, not-for-profit entities and public organizations should ensure they are adequately protected.

Appetite

Crime: Wide Range of target industries with few excluded classes

Fidelity: Financial Institutions Bond coverage targets:

  • Brokers/dealers (up to $3B AUM)
  • Finance companies
  • Banks (up to $1B assets)
  • Insurance companies
Capacity

Crime: $10M capacity on primary or excess basis

FI Bond: $5M capacity on primary or excess basis

Coverage & Benefits

Commercial Crime

Broad definition of employee includes:  

  • Temporary employees
  • Leased employees
  • Former employees acting as consultants
  • Guest students and interns
  • Directors, officers, trustees, and officers
  • Volunteers
  • Employees on military, disability, family

Financial Institutions:

  • Form 14 – Broker Dealers
  • Form 15 – Lenders
  • Form 24 – Banks
  • Form 25 – Insurance

Commercial crime coverage includes:

  • Employee theft  
  • Clients’ property 
  • Vendor theft  
  • Forgery and alteration
  • Inside and outside the premises
  • Computer and funds transfer fraud 
  • Money orders and counterfeit currency 
  • Telephone toll fraud 
  • Identity fraud expense 
  • Virus restoration and licensing violation fines and penalties 
  • Expenses incurred to determine the existence and amount of a loss
  • Cyber Deception (social engineering)
contact_underwriter
Contact an Underwriter
*Required
${ resultCount }0 contacts meet your criteria (Select from options above to return the items you need)
${ document.Full_Name }
${ document.Title }
${ document.Contact_Number }
PageShowing page ${ currentPage } of ${totalPages}

Related products

Add crime to the following products: Allied HealthcareArchitects and EngineersMiscellaneous Professional LiabilityManagement LiabilityCyber, and Technology

Document finder

Looking for a document? Find it here or check out our other resources.

View resource center

*Required
Refine Search
${ resultCount }0 documents meet your criteria (Select from options above to return the items you need)
A link to "${ copiedDocument.Title }" has been copied to your clipboard
Document Share ${ column.display_name }
${ document.Title } Copy Link ${ document[column.column_mapped_to] }
PageShowing page ${ currentPage } of ${totalPages}

Claims scenarios 

Not sure what risks our product covers? We’ve brought some scenarios to life.

Cabinet manufacturer

The finance officer stole about $25,000 a week for seven years for a loss of approximately $9,900,000, including $400,000 in charges to a department store charge card in one year. 

Cabinet manufacturer

The finance officer stole about $25,000 a week for seven years for a loss of approximately $9,900,000, including $400,000 in charges to a department store charge card in one year. 

Public school district

A business manager inflated pay from $1,000 to $10,000 a month for a loss of at least $806,000, which went undetected for ten years. 

Public school district

A business manager inflated pay from $1,000 to $10,000 a month for a loss of at least $806,000, which went undetected for ten years. 

Entertainment company

After email and telephone due diligence, an entertainment company entered into a contract with an event promoter to re-sell tickets for an upcoming event. The entertainment company paid the event promoter for the tickets. Shortly after the payment was made, the promoter ceased all communication and no event was ever held. 
Total loss: $50,000. 

Entertainment company

After email and telephone due diligence, an entertainment company entered into a contract with an event promoter to re-sell tickets for an upcoming event. The entertainment company paid the event promoter for the tickets. Shortly after the payment was made, the promoter ceased all communication and no event was ever held. 
Total loss: $50,000. 

Energy company

An employee of an energy company received phone and email communications from an existing trusted vendor. The vendor asked them to make payment on several invoices to a new account at a different bank. The employee made the transfers only to find out that the communications had not come from the actual vendor, but from a fraudster who had hacked the vendor’s email account. 
Total loss: $2,400,000. 

Energy company

An employee of an energy company received phone and email communications from an existing trusted vendor. The vendor asked them to make payment on several invoices to a new account at a different bank. The employee made the transfers only to find out that the communications had not come from the actual vendor, but from a fraudster who had hacked the vendor’s email account. 
Total loss: $2,400,000. 

Hotel

An employee at a hotel received an email booking request from a travel agent in Indonesia organizing a conference for a Japanese company. The travel agent wanted to pay the full amount in advance with the Japanese company’s credit card and asked that the commission funds be wired back to them. Shortly after, the hotel wired the commission, it was notified that the credit card charge had been rejected as fraudulent. 
Total loss: $20,000 

Hotel

An employee at a hotel received an email booking request from a travel agent in Indonesia organizing a conference for a Japanese company. The travel agent wanted to pay the full amount in advance with the Japanese company’s credit card and asked that the commission funds be wired back to them. Shortly after, the hotel wired the commission, it was notified that the credit card charge had been rejected as fraudulent. 
Total loss: $20,000 

Broker/dealer

A hedge fund manager embezzled over $12 million for over ten years by wiring funds to an account he controlled. He was able to bypass the requirement for supervisory approval for such transactions. 

Broker/dealer

A hedge fund manager embezzled over $12 million for over ten years by wiring funds to an account he controlled. He was able to bypass the requirement for supervisory approval for such transactions. 

Bank

A former bank vice president embezzled over $1 million over an eight year period by transferring funds into a friend’s accounts. He used the money to pay his mortgage, car payments and credit cards, to make home improvements and to gamble. 

Bank

A former bank vice president embezzled over $1 million over an eight year period by transferring funds into a friend’s accounts. He used the money to pay his mortgage, car payments and credit cards, to make home improvements and to gamble. 

Insurance

A customer service representative in a life insurance company embezzled a death benefit and policy loans, and issued fraudulent checks totaling over $75,000.  

Insurance

A customer service representative in a life insurance company embezzled a death benefit and policy loans, and issued fraudulent checks totaling over $75,000.  

Key contacts

Doug Karpp
SVP, Product Head – Crime & Fidelity
Anne Jarrell
VP, Claims-Executive Risks

News and insights

We have a team of experts across the industry. Read their latest advice, find useful thought leadership, and discover industry news.

Visit the Hiscox Blog

The 2017 Hiscox Embezzlement Report

Download our third annual report for tips and tricks on how to help your client mitigate risk and manage employee theft.

The 7 Principles of Underwriting Service

There is more to this industry than just paying claims fairly. What does service mean for underwriting?

Are Your Customers Protected from Embezzlement?

Small businesses are particularly vulnerable because they often employ only one person who has responsibility for the accounting or accounts payable function.