Downtown Portland, Oreogn

Commercial Crime Insurance

Commercial Crime Insurance will protect your business against criminal behavior of a dishonest employee or third party.

Do you need Commercial Crime Insurance?

Businesses face a myriad of risks from both within and outside the organization. One risk, however, which might not initially be at the forefront of one’s insurance coverage planning, but may represent one of the largest exposures to loss is the effects of crime. This might be from office burglary and destruction of property to confidential data theft and executive bribery. Any level and type of crime can have a devastating effect on your business.

Commercial Crime insurance can be written as a separate, standalone policy or it can be written within your Business Owner Policy or Commercial Package Policy. Either way, employee theft and third party crime and fraud are real possibilities to your business.

The advantage of having a separate, standalone commercial crime insurance policy is that it allows you to customize coverage for specific needs of your business. On the other hand, having Commercial Crime Insurance included with your Business Owner Policy or Commercial Package Insurance policy might be easier for some businesses since the coverage is automatically bundled into one comprehensive policy.

One thing to be aware of is that some crime coverage’s aren’t automatically bundled into a Business Owner Policy so it might be necessary to have a stand alone policy to specify a specific coverage’s inclusion.

The following are the coverage areas of Commercial Crime insurance that your business needs to consider:

Provides protection for employee theft of money, securities, or property.
Provides protection for a loss due to dishonesty in writing, signing, or altering checks, bank drafts, and other financial instruments.
Provides protection for a loss of money and securities stolen while they’re in the care of anyone covered by your policy.
Provides protection for a loss of property, other than money and securities, stolen from within your premises.
Provides protection for a property other than money and securities for theft from inside the premises and robbery of a messenger away from the premises.
Provides protection against theft of money, securities, or property by using a computer to transfer covered property from your premises or bank to another person or place. No coverage is provided for theft of information or for computer vandalism. Here are two claim examples:

  •  An employee of a vendor fraudulently gained access to your computer system and changed the bank routing number from the vendor to the employee’s bank routing number, causing a large sum of money to be transferred directly to the employee instead of the vendor.
  • A former employee used their supervisor’s password to enter the your building and gain access to the supervisor’s computer. Using their bank routing number, they activated transactions to receive fake reimbursements allegedly made to your company’s customers.
Provides protection for direct loss of money and securities in the your transfer account on deposit at a financial institution committed by a third party and directly caused by:

  •  Electronic, telephone or fax instruction which purports to have been transmitted by you but which was fraudulently transmitted by someone else without the your knowledge or consent.
  •  Written instruction issued by you which is then forged or altered by someone else without your knowledge or consent, or which purports to have been issued by the you but was fraudulently issued without your knowledge or consent.
  • Electronic, telephone or fax instruction received by you which purports to have been transmitted by an employee but was fraudulently transmitted by someone else without the you or your employee’s consent.
Provides protection for a loss due to acceptance of a money order that was issued (or is purported to have been issued) by a post office or express company and loss due to acceptance of counterfeit paper currency of the United States or Canada.
Provides protection when employees, acting in good faith, comply with instructions to make a wire transfer or another type of transfer, to a fraudulent third party replicating a legitimate correspondence. It can be from an email as well as a fax, instant message, text, phone call, or other electronic means.
Provides protection against loss by the surrender of property as a result of a threat of harm to you, an employee, or a relative or guest of your business or your employees.

Reach out to me if you’re considering Commercial Crime insurance. I will discuss with you how it works and assess if it fits into your risk management needs. If you determine this coverage is needed I will then provide you with comparative Commercial Crime insurance quotes from multiple insurance carriers so you can get the best possible rate.

As an insurance broker I help businesses throughout Oregon and the Pacific Northwest manage risk.