Many people think that if their business doesn't handle cash, they don't have a crime exposure. They are wrong.

Crime insurance protects businesses from employee dishonesty, embezzlement, forgery, robbery, computer fraud, wire transfer fraud and other offenses that have the potential to cause financial ruin.

These schemes involve every possible angle, taking advantage  of any potential weakness in your company’s financial controls. From fictitious  employees, dummy accounts payable, non-existent suppliers to outright theft of  money, securities and property. Fraud and embezzlement in the workplace is on  the rise, occurring in even the best work environments.


Many people think that if their  business doesn’t handle cash, they don’t have a crime exposure. Often it’s too  late when they realize that if they buy, sell or handle goods and services,  there is an opportunity for fraud.  Because  crime-related losses are not typically covered by most insurance policies,  crime protection insurance is a necessary component for any business.

Why do I need Fidelity/Crime Insurance?

80% of losses occurred at organizations with 150 employees or less.

Fraud and embezzlement in the workplace is on the rise,  occurring in even the best work environments. According to a leading  international accounting firm:

  • 80% of workplace crime is carried out by employees
  • One in four employees has either committed or witnessed workplace fraud and abuse
  • One in four employees committing fraud against their employer has been with the company for more than 10 years
  • Only one in three of those who have witnessed a workplace crime bother to report it


The current industry standard has five (5) main  coverages incorporated in the policy. Below is a brief description of each:

Employee Dishonesty:
This covers the loss of money, securities and other property caused by employee dishonesty. The employee may act alone or in collusion with others, as long  as it’s not an owner or partner (We can tailor the policy for industries that  traditionally have partners, such as law firms). The employee must act with the  intent of causing a loss, and either the employee or another person or  organization must obtain a financial benefit from the employee dishonesty. In  certain industries such as the airline industry, the definition of "other  property" has to be amended to incorporate the market value of the  "other property”" This can also include a Client’s money, securities  or property. Some policies have a broad definition of employee to include  temporary employees and volunteers.


Forgery Or Alteration:
This covers losses caused by forgery  or alteration of, on or in checks, drafts, promissory notes or other similar  instruments. These instruments must be made by, drawn by, or drawn upon by  persons other than the insured and is purported to have been made or drawn.  Coverage can be added by endorsement for credit, debit or charge card forgery,  if such instruments are issued to the insured business or its employees for  business purposes. This area may also include coverage involving money orders  and counterfeit currency.

Theft, Disappearance, And  Destruction:
This covers losses caused by theft, disappearance or destruction of money and  securities. The loss may be sustained inside the insured’s premises or banking  premises. Or the loss may also be sustained outside the premises while in the  care and custody of a messenger.

Computer Fraud:
Computer Fraud covers the fraudulent transfer of  money, securities and other property from any computer inside your premises or  a banking premises to somewhere else outside of either premises. For example,  your salesperson was staying in a hotel in Peking (where the employee was  conducting business from a rented hotel room) and someone broke in and used the  salesperson's laptop to transfer funds to his/her account; this too would be  covered.

Wire  Transfer Fraud:
Wire fraud refers to fraud that is committed through the use of wires, or  electronic means. Wire fraud may be committed using interstate wires,  television or radio communications, or the Internet. Wire fraud is an  intentional act to defraud another individual or entity of his money or  property.

Other Possible Policy Features Include:

  • Full Discovery
  • Third Party
  • Coverage for ENTIRE Investigative Costs
  • Worldwide Territory
  • Social Media Fraud

Items usually necessary to obtain an indication:

  • Application
  • Latest financials (Audited preferred)
  • Latest CPA management letter and response
  • Any special exposure concerns
  • Depending on the line of business and coverages desired, further information may be required.

“Please see polic(ies) and endorsement(s) for exact terms, conditions and exclusions.  Each insurance company has its own policy language.  We encourage you to seek legal advice prior to securing any insurance."



Claim Examples


  • TBA