Crime Insurance
Because crime-related losses are not typically covered by most property insurance policies, crime protection insurance is a necessary component for any business. Unfortunately, the majority of businesses don't purchase enough crime protection.
Liabilities covered by crime insurance usually fall into two categories, although many policies combine both types of coverage:
- money and security coverage -- pays for money and securities taken by burglary, robbery, theft, disappearance and destruction.
- employee dishonesty coverage -- pays for losses caused by most dishonest acts of your employees, such as embezzlement and theft.
On average, a small-to-mid-sized company can usually purchase $100,000 in crime insurance coverage for around $1,000 in yearly premiums. How safe and claim-free your business has been in the past will affect your premium rates. The method or system your company uses to handle unethical behavior may also affect your premiums.
To learn about crime insurance coverage available for your type of business, it is important to develop a working relationship with a qualified commercial insurance advisor. Your advisor should be familiar with the general type of business you are in and your particular operations. By working closely with your advisor, you can identify the many risks your business has, acquire the coverage you need, and protect what you are most responsible for - your business.
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