Business Crime Coverage, often referred to as Fidelity Insurance, is a specialized type of insurance policy that provides coverage not typically found in standard Commercial Property Policies. This insurance is crucial for businesses aiming to safeguard against a wide array of criminal activities that can lead to significant financial losses.

When a business experiences a loss, the impact can be devastating. Entrepreneurs and business owners work tirelessly to ensure their ventures succeed, making it imperative to protect against potential risks. Business Crime Coverage offers solutions and information to shield your business from the very real threat of crime.

Business Crime Coverage or Fidelity Insurance offers protection from various crimes, including theft of money or property, employee dishonesty, embezzlement, and on-premises robbery. As detailed below:

Theft of Money or Securities

This coverage protects against the theft of money or securities from your building or financial institution by someone other than an employee. For instance, if a burglar breaks into your office and steals cash or valuable documents, this insurance can help cover the loss.

Employee Dishonesty Coverage

Employee dishonesty can be a significant risk for any business. This coverage protects against employees who illegally take money, securities, or other business property. A notable example is the case of a former employee of a retail store in New York who embezzled over $500,000 by manipulating the store’s financial records.

Third Party Coverage

This coverage extends protection to your clients. If an employee illegally takes money, securities, or other business property from your clients, this insurance can help mitigate the financial impact. For example, if a financial advisor misappropriates a client’s funds, this coverage can help cover the losses.

Forgery

Forgery coverage protects against attempts to forge checks. This is particularly relevant in today’s digital age, where cybercriminals can create sophisticated forgeries. According to the FBI, forgery and counterfeiting cost businesses billions of dollars annually.

Robbery Coverage

Robbery Coverage is a component of business crime coverage that protects you when someone robs you of your property while it’s inside your building or in the care of a messenger or armored vehicle company. It also helps cover the loss or damage of a locked safe or vault located at your business that has been broken into during a robbery. This coverage is essential for businesses that handle large amounts of cash or valuable items.

Cyber Liability

Additional types of coverage, such as Computer Fraud and Social Engineering coverages, are also available with a different type of policy known as a Cyber Liability policy. These coverages are becoming increasingly important as cybercrime continues to rise. According to a report by the Identity Theft Resource Center, the number of data breaches in the U.S. has been steadily increasing, highlighting the need for robust cyber liability insurance.

Business owners should consider adding a fidelity policy to their insurance portfolio to protect against these risks. Please give us a call to ask any questions you may have or to find out if adding a fidelity policy to your insurance portfolio would benefit you.

This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice.

In conclusion, Business Crime Coverage is an essential component of a comprehensive risk management strategy for any business. By understanding the various types of coverage available and the potential risks, business owners can better protect their enterprises from the devastating effects of crime.