Crime Insurance

Commercial crime insurance covers financial losses caused by criminal acts, including employee theft and embezzlement, forgery and alteration of checks, robbery and burglary, computer fraud, funds transfer fraud, money order and counterfeit currency losses, and theft of money, securities, or other valuables. Coverage applies whether the crime occurs on or off the business premises, with policies often extending to losses involving delivery drivers, off-site events, and remote employees handling company funds.

Commercial property insurance covers theft of tangible business property like inventory, equipment, and furniture, but it does not cover several major crime exposures. Property policies typically exclude employee dishonesty, embezzlement, forgery, computer fraud, social engineering schemes, and theft of money or securities, all of which are core to a commercial crime policy. The two policies work together, with property covering damage to physical assets and crime covering financial losses from criminal acts.

Yes, and it is often more damaging to small businesses than to large companies. Studies show that small businesses suffer significantly higher per-incident losses from internal theft because they typically have fewer financial controls, less oversight, and limited segregation of duties. Common schemes include cash skimming, payroll fraud, inventory theft, false expense reimbursement, and check tampering. The combination of trusted access and limited internal monitoring makes employee dishonesty one of the most overlooked threats facing small and mid-sized businesses.

Commercial crime insurance covers financial losses from criminal acts targeting your money, securities, and other property, including computer fraud schemes where stolen credentials are used to transfer funds. Cyber liability insurance covers losses from data breaches, ransomware, hacking, and unauthorized access to customer data, including breach response costs, regulatory fines, and customer notification expenses. The two policies overlap on certain digital-financial crimes but are designed for different exposures. Many businesses carry both to fully address financial fraud and data security risks.

Crime insurance is valuable for any business that handles money, processes payments, manages payroll, holds inventory, or grants employees access to financial systems. Industries with the highest exposure include retailers, restaurants, financial institutions, medical and dental practices, nonprofits, property management firms, wholesalers, and businesses with delivery operations. Nonprofits in particular often face elevated risk because financial controls may be limited compared to private-sector employers, making employee dishonesty a leading concern.