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The Scene of the Crime: Does Your Business Need Crime Insurance?

“That couldn’t happen to us.”

That mindset can cost businesses a lot of money and heartache because bad things do happen, including crimes against your business committed by your own employees. Every day, trusted employees pilfer or embezzle from their employers, and the costs are staggering: a 2017 study estimated an annual price tag of $50 billion for U.S. businesses alone.

And if you think employee crime affects only larger firms where it’s easier for thieves to go unnoticed, think again: another study showed that small and midsize businesses bear 68 percent of the burden of employee crime.

A standard commercial insurance policy might provide some protection from criminal acts, but the coverage is limited. That’s why there’s crime insurance: to fill the gaps between your standard policy and your exposure to criminal activity.

A typical crime insurance policy will insulate your business against:

  • Misuse of funds. Typically, multiple employees have access to company funds or financial information, and for some the temptation can be too much to resist. Crime insurance protects you from the misuse or illegal transfer of funds by staff members.
  • Goods in transit. If you send or receive physical products, you need protection here. Goods in transit are an easy target for employees, and offsite theft can be very difficult to prove. That translates to protracted and expensive legal battles. Crime insurance provide the coverage you need.
  • Forgery and alteration. Hopefully, your business follows best practices including the requirement that checks be countersigned. Even if you do, employees often have access to checks that can be easily altered for personal gain. Crime insurance offers a layer of protection beyond your standard commercial policy.

The bottom line is that it can happen to you. Make sure your business is protected in case it does.

Questions about crime insurance for your business? Contact Consolidated Insurance.

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