Learn about fidelity and crime insurance which provides monetary compensation for the disappearance or destruction of property or cash committed by a businesses' employees. These losses include due to employee dishonesty, theft, burglary, computer fraud, forgery or alteration and loss of money & securities.
Fidelity And Crime Insurance
As a business owner, you rely on your employees to handle the day-to-day operations of your organization. They are an invaluable part of your team. However, despite your best efforts to find the most reputable and honest employees, you may be caught off-guard by someone who is dishonest and ends up cheating you and your company.
Most businesses run background checks and make a good effort to hire honest employees, but studies are showing that fraud and employee theft is becoming more common - and it is more common in smaller businesses with less sophisticated hiring processes.
Unfortunately, even the nicest, most seemingly honest people may not be trustworthy. In order to protect your establishment from the possibility of fraudulent activity committed by an employee, it's a wise idea to invest in fidelity and crime insurance.
What Is Fidelity And Crime Insurance?
Fidelity and crime insurance covers some of the most common and devastating threats businesses can face. These threats include losses to business assets that are the result of a dishonest employee, theft and/or destruction of property, credit card forgery, and technology fraud and theft.
For example, if an employee embezzles money, uses your business credit cards to purchase items for themselves, steals property that belongs to your organization, or compromises sensitive data from your company computers, fidelity and crime insurance will cover the cost of your losses.
Why Fidelity & Crime Insurance Is Important
Every organization, from small local establishments to large international companies, can be the target of crime. More often than not, those crimes are committed by employees. Even long-term employees who have been working with your company for years could be committing criminal acts right under your nose.
They can find a weakness in your organization and use them to their advantage. For instance, a staff member may find out that you don't read the details on your company's credit card statement and just pay the bill, and charges items to your account that are intended for his or her own use.
As you can imagine, the results of fraudulent and criminal activities can wreck havoc on your business. Not only do you feel completely taken advantage of, but you could also suffer significant financial losses. Crime and fidelity insurance can help you deal with the financial devastation that employee fraud or crime can cause so that you don't end up having to pay for them out of your own pocket.
What Does Fidelity And Crime Insurance Cover?
The coverage provided by a policy will differ from insurance provider to insurance provider; however, in general, this type of policy will offer coverage for the following:
- Employee Theft: This includes any loss of money, property, or securities that are the result of theft or forgery committed by an employee.
- Funds Transfer Coverage: The losses that result from an employee or another third party as a result of the fraudulent transfer of money from your company's financial institution to the guilty party's financial institution.
- Credit Card Fraud: Any losses that are associated with fraudulent credit card activity; for example, an employee or a third party uses your business credit card to purchase items for him- or herself.
- Computer Fraud: Losses that are the result of an employee or third part fraudulently using a computer network to steal from your company.
These are just some of the things that a policy can cover. To find out exactly what type of coverage you need and the type of coverage a carrier offers, speak to an insurance broker directly.
How Much Does Fidelity And Crime Insurance Cost?
There isn't a definitive answer to this question. As with all types of business-related insurance policies, there are a number of factors that will impact the cost of a crime policy. These factors can include the size of your business, its net worth, the amount of employees who work for your organization, the type of business you do, and the kinds of operations that your business conducts. These factors determine the amount of coverage you need, which determines how much your insurance policy will cost you.
Further Reading On Management Liability Insurance
- Directors And Officers Insurance For Nonprofits
- Directors And Officers Liability Insurance
- Employment Practices Liability Insurance
- Fidelity And Crime Insurance
- Sexual Abuse And Molestation Insurance
- Sexual Misconduct Liability Insurance
Fidelity And Crime Insurance - The Bottom Line
We hope this article on fidelity and crime insurance was informative. To learn more about this type insurance, including the benefits it offers, what type and how much coverage you need, and how much a policy will cost, contact a reputable insurance provider that offers this type of protection.