Crime

Crime Insurance financially protects an organization's assets from physical misconducts such as dishonesty, theft or fraud from employees or third parties. Essentially it is a more comprehensive cover than fidelity guarantee as it covers acts from third parties. Although businesses may consider their management and financial controls as adequate, serious incidents can still come out of the blue causing trouble and can costing firms dearly.

Crime Insurance covers you for the following types of losses:

• Dishonesty of employees (including volunteers)
• Computer fraud coverage
• Disappearance, or destruction of property
• Forgery or alteration
• Burglary from premises
• Robbery outside the premises
• Investigation Cost
• Embezzlement

General insurance policies do not protect against acts of employees or third parties. Even if you may feel you have the utmost trust in your employees as well as having a high security system, it would be better to feel safe than sorry as you never know when such crimes will be committed. Thus, crime insurance policies can not only fill this gap in your insurance coverage, but also give you sense of financial security.

If your business has the following characteristics, then it would be strongly advised to consider purchasing crime insurance:

• Hires employees or uses volunteers to perform certain tasks
• Conducts business with customers or third parties such as vendors, suppliers and distributors
• Maintains company’s financial records
• Accepts cash, cheques, credit cards as payment
• Maintains inventories of goods and materials

There are a multitude of factors connected to your business that plays a part in determining the price of a crime insurance policy. The factors can be found below:

• Business size: There are two facets regarding size - number of employees and revenue. The more employees and the more revenue you have, the higher the risk that a criminal act will occur, and therefore increases the premium.
• Security protocols: Having solid procedures in place demonstrates that you are taking office security seriously. Investing in technology can go a long way in reducing premiums but it does not neccessarily have to be extreme; simple precautions such as few noticeable cameras and access controls for cash and securities can yield considerable trust to insurers, which could potentially yearn a better deal.
• Financial protocols: Segregating duties and installing robust procedures for deposits, checks, inventory management and approving bank transfers can significantly reduce your premiums.
• Property and equipment value: The premium can drive up if employees have ease of access to property, especially valuable property.
• Coverage limits: The coverage limits represents the maximum amount that you will be compensated in the event of a claim. Hence, higher limits will mean more expensive coverage.
• Claims history: Businesses with poor claims history and have excessive crime-related losses can expect higher premiums.
• Deductibles: Deductibles are often included in business insurance policies. Deductibles are the amount of money your company will have to pay out of pocket before any coverage commences. Thus, the higher the deductible, the cheaper the cost of the policy.
• Location: Depending on insurers, location may be factored when determining the price. Areas that are riddled with crimes are more likely to have a higher premium than areas where it is considered safe to live and work in.

The content provided is for informational and educational purposes only. The coverage written may change without notice and may not be applicable to all situations and policies. Terms, conditions and qualifications are also subject to circumstance, supplementary material and underwriting. CHAZ Insurance Brokers Ltd. is not liable for any discrepencies should there be any. For more information, please contact us via the enquiry form below.