Comprehensive Crime Insurance

In an increasingly sophisticated commercial environment, more businesses are at risk of suffering losses through criminal activities. The traditional threats of robbery and theft were overtaken by white collar crime events and in today’s world the focus is now on cyber-crime. The different categories of fraud risks co-exist and are pervasive no matter the type of industry or scale of the business.

Typical crime insurance claims involve employee dishonesty, embezzlement, forgery, robbery, internet or cyber fraud, funds transfer fraud, counterfeiting and other criminal acts. The schemes and scams are extensive and take advantage of weak links in fraud risk management, audit and compliance processes.

The following examples are common fraud events impacting all companies:

• An employee setting up phantom vendors or phantom employees for the sole purpose of stealing money from the company
  
  
• Unauthorised funds transfers
  
  
• Employee colluding with an external party for asset misappropriation
  
  
• Company receiving counterfeit money
  
  
• Inventory theft whilst in transit or on premises (warehouse), often involving employee and third party collusion
  
  
• Computer hacking and related cyber fraud
  
  
• Expense report fraud from employees
  
  
• Forgery of financial documentation such as cheques, bank drafts, telegraphic transfers & letters of credit.
  
  

With the increased sophistication of fraud risks, traditional Infidelity, Money or Transit Insurances are no longer effective risk transfer solutions.

Key Insurance Features

Crime insurance protects a company from loss of money, securities, inventory or other property resulting from fraud events.

Crime insurance provides coverage against:

• The direct loss from dishonest or fraudulent acts committed by your employees or third parties
  
  
• The loss of money, securities or property whether on your premises or in transit
  
  
• Forgery of negotiable instruments such as cheques and for losses arising from third party
  
  
• Computer crime including funds transfer fraud.
  
  

Arranging a “fit-for-purpose” crime policy requires unparalleled experience and expertise, mindful that different insurers have subtle wording variations between employee dishonesty and theft language or, loss discovered and loss sustained language that can have a significant impact on coverage.