Crime Insurance
Crime insurance covers losses from employee dishonesty, forgery, theft of money and securities, computer fraud, and funds transfer fraud. Social engineering coverage (for losses from spoofed wire transfer instructions) is increasingly important and often sublimited unless specifically negotiated. We place standalone crime policies, fidelity bonds, and financial institution bonds with limits matched to your actual exposure. Contact us to review your program.
What crime insurance actually covers
Most business owners assume their property policy covers theft. It doesn’t, at least not the kinds of theft that actually happen. Employee embezzlement, fraudulent wire transfers, forged checks, and vendor billing schemes are all excluded from standard property and GL policies. Crime insurance fills that gap.
Social engineering fraud is the biggest growth area. An employee gets a spoofed email that looks like it’s from the CFO, wires $200,000 to a fake vendor account, and the money is gone. Standard crime policies either exclude social engineering or cap it at a small sublimit. We negotiate higher sublimits or standalone social engineering endorsements because the exposure has grown faster than the standard forms.
We also see gaps in third-party crime coverage. If your employees handle client funds, the client may require you to carry third-party fidelity coverage, and that’s a separate insuring agreement from first-party employee theft. Getting both right matters.
