The trusted bookkeeper
A long-time bookkeeper quietly pays personal bills from company accounts for several years before an audit uncovers it.
Employee theft coverage can reimburse the stolen funds, up to the limit.
Management & Financial Liability
Commercial crime insurance, for theft, forgery and fraud.
Commercial crime insurance covers money, securities and other property your business loses to theft, forgery and fraud, whether the person responsible is an employee or an outsider.
What crime insurance covers.
Property policies typically exclude employee dishonesty, and most cyber policies weren't built to replace stolen money. Crime insurance fills that gap, and it's often packaged with D&O and employment practices liability in a management liability program.
The coverage comes in separate insuring agreements, each with its own limit. Which ones you select, and how social engineering fraud is handled, decides whether the policy responds to the losses businesses actually see.
- Employee theftMoney, securities and property stolen by your own employees, including theft that goes on for years before anyone notices.
- Forgery or alterationLosses from forged or altered checks, drafts and similar instruments drawn on your accounts.
- Computer and funds transfer fraudLosses when someone fraudulently uses a computer, or sends fraudulent instructions to your bank, to move money without your knowledge.
- Social engineering fraudMoney your own staff sends after being tricked by someone posing as a vendor, client or executive, where added, usually under its own sublimit.
- Money and securitiesTheft, disappearance or destruction of money and securities on your premises or in transit.
- Client propertyTheft of your clients' money or property by your employees, when included.
What it typically doesn’t cover
- Social engineering under standard agreementsCourts have often held that losses from staff being tricked into sending money aren't covered by computer or funds transfer fraud agreements. It needs its own coverage.
- Theft by owners and partnersDishonest acts by owners, partners or principals are generally excluded.
- Data breach costsForensics, notification and ransomware response are cyber coverages. Cyber Liability Insurance
- Indirect and consequential lossLost income and other indirect losses are typically excluded, and investigation costs may be limited.
- Losses after a known dishonest actCoverage for an employee typically ends once you learn of a dishonest act by that person.
Coverage descriptions are general summaries. Actual coverage is governed by the terms, conditions and exclusions of the policy issued. Availability varies by state and carrier.
Real-world examples
What a claim can look like.
Claims rarely look dramatic at the start. They usually begin with an ordinary day, an email or a phone call.
The CEO email
An accounts payable clerk receives an urgent email that appears to be from the CEO and wires funds to a new account.
Social engineering fraud coverage, if purchased, can respond up to its sublimit.
The altered check
A check you issued to a vendor is intercepted, altered and cashed for a much larger amount.
Forgery or alteration coverage can respond to the loss.
Examples are illustrative. Whether a claim is covered depends on the facts and the terms, conditions and exclusions of your policy.
Often paired with
Cyber Liability InsuranceFinancial protection against data breaches, ransomware, network security incidents and other cyber-related exposures.Directors & Officers (D&O) InsuranceProtects company leaders and the organization against claims alleging wrongful management decisions or actions.Employment Practices Liability Insurance (EPLI)Coverage for claims involving harassment, discrimination, wrongful termination and other employment-related practices.Lawyers Professional Liability InsuranceLegal malpractice coverage for attorneys and law firms.Questions
Common questions about crime insurance, answered.
What's the difference between crime and cyber insurance?
Crime insurance covers money and property stolen through theft, forgery and fraud, including by your own employees. Cyber insurance covers the costs of a data breach or attack, like forensics, notification, ransomware response and downtime. Wire fraud can fall under either, so the two policies should be coordinated so it isn't left uncovered.
Does crime insurance cover social engineering fraud?
Only if the policy includes social engineering or fraudulent instruction coverage, which is often added by endorsement with a lower sublimit and may require that payment changes are verified by a call-back. Standard computer and funds transfer fraud agreements typically don't respond when your own staff is tricked into sending money.
Is crime insurance the same as a fidelity bond?
They're closely related. A fidelity bond is the traditional name for coverage against employee dishonesty. Commercial crime policies include that protection along with coverage for outside theft and fraud. ERISA also requires a fidelity bond for those who handle employee benefit plan funds, which a crime policy can often satisfy.
What is a discovery form?
A discovery form covers losses you discover during the policy period, even if the theft happened earlier. A loss-sustained form covers losses that occur during the policy period. The difference matters most when you change carriers.
How much does crime insurance cost?
Crime pricing depends on how many employees you have and who handles money, your industry and revenue, internal controls like dual sign-off and payment verification, the insuring agreements and limits you choose, and your claims history. We compare options across our carrier relationships so you see real prices for your business, not an average.
Talk to an advisor
Let's get this fitted properly.
Tell us about your business. A principal will review your needs, shop the market and walk you through the options in plain English.