Money theft hurts businesses, no matter their size or status. It happens in various ways – employees might steal money, thieves might rob armored cars, fake checks might be accepted, and wire transfers might be fraudulent. However it unfolds, money theft causes significant damage.
Crime insurance protects companies from loss due to illegal activities. It does not deal with defending against third-party lawsuits. This policy reimburses the company for its direct losses of money, securities or other tangible property.
Companies with 5+ employees face higher risk of employee theft, fraud, and forgery.
Processing large amounts of cash, checks, or card transactions increases the risk of theft.
Temp workers increase crime risk for businesses.
US businesses lose 5% of revenue to fraud. Crime insurance prevents this loss by reimbursing for money, securities, and tangible property losses.
Employees stealing from their workplace is a risk for businesses, costing them around $50 billion each year in damages.
Global companies lose $3.5 trillion annually to fraud, causing significant damage to businesses of all sizes.
US businesses lose 5% of their revenue to fraud, according to the Association of Certified Fraud Examiners.
Crime insurance now covers more than just employee theft. It covers traditional theft methods like robbery, burglary, and forgery. Policies also cover new kinds of theft due to technological advancements, such as social engineering and fraudulent instructions. Unfortunately, criminals can now commit these crimes from home.
Employees may unknowingly give away sensitive information through phishing emails, which could lead to unauthorized funds transfer.
A hacker impersonates the CEO via email to request urgent funds transfer for a secret deal.
Employee introduces virus via storage device, leading to unauthorized fund transfer.
Here are some claim examples that illustrate what Crime Insurance covers:
An employee at a small business stole over $100,000 by creating fake vendor accounts and completing fraudulent transactions over two years. The embezzlement was only uncovered by chance when the employee became ill and could no longer continue the deceit. The insurer investigated the claim and paid out in full.
A Fintech company’s office was burglarized and all the computers and USB cords were stolen, totaling over $50,000 in losses.
Tim worked in accounting for a tech company and was hired through his college alumni network by CEO Jill. He fell victim to a spearphishing attack after wiring $50,000 to a fraudulent account for an alumni event sponsorship.
Protect your business from theft with crime insurance. Contact us for a quote based on your unique needs.
Crime insurance can be its own policy or added to an existing one, as an endorsed policy.
Employee dishonesty is the top cause of crime insurance claims, so businesses with staff need to safeguard against this risk.
Shoot us your email and we’ll kick off a conversation to help get you a quote on the best coverage for your brand.