Fidelity/Crime Insurance

What is Fidelity/Crime Insurance?

Fidelity/Crime Insurance programs protect organizations from loss of money, securities, or inventory resulting from crime. Common claims include alleged employee dishonesty, embezzlement, forgery, robbery, safe burglary, computer fraud, wire transfer fraud, counterfeiting, and other criminal acts.

Crime policies are designed to protect your entity from the exploitation of any potential weakness in your company’s financial controls. From fictitious employees, dummy accounts payable, non-existent suppliers to outright theft of money, securities and property.

Although most polices combine both types of crime coverages, exposure covered by crime insurance usually falls into one of the two following categories:

• Money and security coverage - Pays for money and securities taken by burglary, robbery, theft, disappearance and destruction.
• Employee dishonesty coverage - Pays for losses caused by most dishonest acts of your employees, such as embezzlement, theft, and fraud.

When do I need Fidelity/Crime Insurance?

Employee Dishonesty is a cause for concern for any employer or business handling cash or securities for their clients. Due to the fact that crime-related losses are not typically covered by most property insurance policies, crime and fidelity coverage is a necessary component for any business. Unfortunately, most businesses don't purchase enough crime protection.

A recent study released by the Association of Certified Fraud Examiners (ACFE) estimates that the average business is losing 6% of its annual revenues as a result of employee theft — on average more than $9 per day per employee was reported. Crime / Fidelity protection from your insurance provider could mitigate these potential losses.

Why do I need Fidelity/Crime Insurance?

Fraud and embezzlement in the workplace are on the rise, occurring in even the best work environments. According to a leading international accounting firm:

• One in four employees has either committed or witnessed workplace fraud
• 80% of workplace crime is carried out by employees
• One in four employees committing fraud against their employer has been with the company for at least 10 years
• Only one in three of those employees who have witnessed a workplace crime make the effort to report it

Fraud can go on for years and, when discovered, the ultimate impact can be sizeable. Smaller organizations are especially vulnerable to fidelity crimes.

Most business insurance policies either exclude or provide minimal coverage for loss of money and securities. The American Management Association estimates that employee dishonesty is responsible for as much as 20% of business failures. Is your business properly protected?

Typical Fidelity/Crime Insurance coverage highlights include c omprehensive coverage for:

• Employee theft
• Money and securities (on premises or in transit)
• Money order and counterfeit currency fraud
• Forgery
• Funds transfer fraud
• Computer fraud
• Credit card fraud
• Responds to Employee Retirement Income Security Act of 1974 (ERISA) plan bonding requirement.
• Employee dishonesty coverage can be extended to include directors and officers, employees (including part-time, leased, temporary, and seasonal employees), and volunteers
  Worldwide coverage.