Did you know that business-related crimes such as theft, forgery or fraud can impact most organizations? Even with proper security measures and protocols in place, crime can still affect your business. In the case of a crime occurring at your business, are you prepared for the effects?
As a leader in your organization, you want to trust your employees and the people you do business with. The reality is, however, that no business is immune to crime losses. In fact, the Association of Certified Fraud Examiners estimates that a business can expect to lose five percent of its revenue to fraud each year.
If an employee steals from your business, commercial property insurance would likely exclude coverage for such an incident or limit the amount of coverage available. A crime policy may provide compensation for any stolen items, as well as a much broader coverage form. Purchasing a crime policy can provide coverage for these types of events.
Commercial crime insurance can help protect you from losses following a business-related crime. Typical insurance policies often exclude or limit coverage for losses that result from crimes committed by employees and offer limited protection of crimes committed by third parties. Crime policies can provide coverage both at your place of business and while you’re offsite.
Here are some benefits of crime insurance:
It is likely that several of your employees have access to company funds or financial information. In some cases, employees may abuse the access for personal gain. Crime insurance can protect organizations from the misuse or illegal transfer of funds, ensuring your finances are safe from internal criminal acts.
While it can be difficult to imagine, employees and outside actors can extort a company for funds by holding a director or officer hostage, or through other illegal methods. Without crime insurance, your organization would have no means to recoup these losses, which could be devastating to your bottom line.
Computers and emerging technologies have made it easier than ever for employees to carry out crimes against their employers. Crime insurance can provide a crucial layer of protection for any money or securities lost via computer fraud, which is an important piece to an effective cyber risk management program.
Goods in transit are particularly vulnerable to employee theft and in some cases, organizations may not notice anything has been stolen until it is too late. Crime insurance policies can help provide necessary protection for goods in transit and reduce the likelihood of extreme losses whenever you send or receive products.
Your employees may have access to funds and documents that they can easily alter for their own gain. Effective crime insurance policies can provide coverage for losses that result from forgery or alteration of a check.
Have questions about crime insurance policies? Contact Dempsey & Siders today.
2022 ACFE Report to the Nations: Fraud Trends and Key Takeaways – Withum