Successful businesses require competence, cooperation and fidelity, but sometimes the latter is overlooked and lacking. Fidelity and reliability is important to prevent a business from collapsing. Yet, inevitably, all businesses and organizations, no matter how small or how large, are susceptible to criminal acts, such as employee dishonesty, fraud, theft and forgery. For this reason, crime insurance is an essential investment.
Crime insurance, otherwise known as fidelity insurance, provides coverage for loses due to forms of theft of money, property and securities from a business or an organization. Certain types of crime insurance can protect your business from employee theft and dishonesty that can be potentially devastating.
Your business or organization will most likely need crime insurance if…
- You handle cash, securities and/or property
- You own a computer
- You own inventory
- You have employees
- You are an owner or tenant in a building
There are many different types of crime insurance available to tailor to the needs of your business or organization. The list below outlines the more common types of crime insurance.
- Robbery and Holdup – this is the theft of valuables through force, violence or threat during the time when the premises are open for business. For example, this covers the robbery at the cash register where the employee is held at gun-point.
- Burglary – this is the theft of valuables when the premises is closed for business.
- Safe Burglary – this covers damage or loss to your safe or to the property holding your safe.
- Employee Dishonesty – this is the theft of valuables due to the criminal act of an employee. For example, this covers the act of an employee duplicating shop, warehouse and/or office keys to steal equipment or money.
Others include (but are not limited to):
- Forgery or alteration
- Funds transfer fraud
- Counterfeit money and money orders
- Computer fraud
In addition to having crime insurance, you can also take certain precautions to minimize the risk of theft and employee dishonesty crimes.
- Invest in a safe and good alarm system
- Install security mirrors and/or surveillance cameras
- Keep track of your inventory and cash
- Make bank deposits during the day, varying time and route to the bank
- Centralize the accounting procedures
- Ensure that warehouse, store and office keys cannot be duplicated without the master key
Crime insurance protects against additional risks, such as crime-related losses, that property, fire and/or business owners’ insurance policies do not cover. You can prevent crime and theft from being one of the most common losses of your business or organization. Contact one of our brokers at Pacific Insurance Inc. to find the appropriate crime insurance that meets your business’ needs.