Why do I need commercial crime insurance?
As a small business owner and employer, you want to be able to trust your employees. Unfortunately, sometimes you can’t. Employees steal from their employers, and even from customers of the business, at an alarming rate. However, you can protect yourself with commercial crime package. Commercial crime package protects you from the costs associated with employee dishonest, computer and funds transfer fraud, forgery or alteration, money and securities, and theft of a client’s property. It does not cover your actions or those of your partners, your liabilities due to crime-related losses, your accounting errors, or certain specific occupations.
What is covered?
- Employee dishonesty
- Computer and funds transfer fraud
- Forgery or alteration
- Money and securities
- Theft of client's property
What is not covered?
- Your actions or those of your partners
- Your liabilities due to crime related losses
- Your accounting errors
- Specific occupations
Crime package insurance upgrade does cover
Hiscox commercial crime package as part of a business owners insurance policy provides up to $10,000 in coverage for dishonest acts of your employees, including damage to business personal property and theft of money and securities.
Example: In a retail store, an employee was found to have failed to properly ring in sales, pocketing the cash paid by customers, and to have stolen merchandise from the store. The employee was fired, and the company’s commercial crime coverage paid for the costs associated with the theft.
Computer fraud and funds transfer fraud
Your company can be protected for up to $25,000 in losses due to computer fraud and funds transfer fraud, including phishing, ransomware and other scams that involve the use of a computer to fraudulently transfer money, securities or other property.
Example: A new administrative assistant at a financial services firm received an email that appeared to come from the company’s CFO, requesting an immediate wire transfer of funds. The admin processed the request, only to find out later that the email was fraudulent. The company’s commercial crime insurance policy covered the cost of the fraudulent transfer.
Forgery or alteration
Business owners insurance policies include crime coverage up to $2,500 for losses resulting from the forgery or alteration of a check or other financial instrument. The commercial crime upgrade increases this limit to $10,000.
Example: The bookkeeper of a construction company was found to have altered checks after they were signed by the president, making them payable to an account they controlled. The company has a Hiscox commercial crime package policy, which covered the costs of altered checks.
Money and securities
Hiscox commercial crime insurance covers the loss of money and securities used in your business, whether the theft occurs at your business, bank or home. Theft or disappearance of securities is covered up to $10,000 at your business or bank, and up to $5,000 away from your business premises.
Example: A contractor noticed that his checking account was frequently overdrawn, even though he was sure there should have been enough money in it to cover the checks he was writing. He went to the bank to discuss the overdrafts and discovered that a bank employee has been siphoning money from his and others’ accounts. His commercial crime package covered the stolen funds.
Hiscox commercial crime package covers losses up to $5,000 in the event where one of your employees steals your client’s property, including money or securities, at their premises. This coverage is not available in all states.
Example: The owner of an IT consulting company gets several phone calls from customers who say that items have been missing from their offices. The owner notices that all of the complaints are coming from customers who had their computers fixed by a new employee of the company, who later admits to taking the items. The company’s commercial crime package covered the costs to replace the customers’ stolen property.
Crime package insurance upgrade does not cover:
We want you to feel confident you understand your commercial crime insurance. That is why we believe in being open about what we do and don’t cover. The following is a list of what we don’t cover:
We won’t cover dishonest or criminal acts committed by you or your partners, or acts committed by your employees with the aid of one of your partners.
We only cover your losses due to the described events. The policy does not provide coverage for any liability you may have to a third party due to such losses.
Hiscox will not cover losses that are due to your accounting errors.
Our commercial crime package is not available for attorneys, claims adjusters or those in the financial industry.
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This information is provided to assist you in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply that any claim is covered. Coverages are subject to underwriting and may not be available in all states.