What You Should Know About Crime Insurance

What You Should Know About Crime Insurance

Crime insurance policy

Did you know that the average business loses an estimated six percent of total revenue due to employee dishonesty and crime? Even if you truly believe you have some of the most honest employees on the planet, it would be unwise not to put certain safeguards in place for your own protection. One of these safeguards should be a crime insurance policy. Here are some things you should know about crime insurance before selecting a policy.

Understand the Definition of Employee

Understanding how an employee is defined for purposes of your crime insurance policy is very important. Your crime insurance should provide coverage for the following definitions of employee:

  • A person who is in the service of the insured during the time of the crime. Coverage typically extends for 30 days after the persons employment is terminated.
  • A person who is controlled by the insured
  • A person who is compensated by the insured through wages, commissions or salary

In order for a person to qualify as an employee of the insured, they must meet all three of the conditions listed above.

Commercial Crime Coverage

Most crime insurance policies cover theft, employee dishonesty, forgery, transfer fraud, money and securities. For specific details regarding your crime insurance policy coverage, speak with your insurance agent.