Crime coverage in insurance is primarily dealing with the loss of money from the company.  White-collar crime is on the rise!  Whether it is inside or outside the organization, there are a wide variety of possible exposures.  Another factor of the rising need for this coverage is that we are seeing more and more contractual requirements for companies to have this coverage to your client from your employees/contractors actions. eg. IT Consultants, Accountants, Temporary Placement Contractors, Property Manager’s, Condo Corporations, etc. Anywhere that a 3rd party may have access to someone else’s funds…

In today’s computer and internet-dependent world, we now seeing increasing Crime losses from cybercriminals.  This may involve email phishing losses, someone impersonating the business owner giving accounting staff to send them money, impersonating vendors asking to change account numbers of where to pay your bills to, etc.  In this quickly changing Cyberworld, insurers are trying to keep up with the evolving risks and are now extending coverage to help protect businesses in these areas when they purchase Crime coverage.

More traditionally, for losses inside the Organization, the primary exposure is from Employees (or a Partner) acting alone or in collusion with others, to set up false payees and funnel money to themselves;

Outside the Organization, there is a very wide range of exposures in addition to what was discussed above:

  • From Robbery, burglary, hold-up inside or outside the premise
  • To fake Money Orders and Counterfeit Paper Currency
  • Cheque or Credit Card Forgery
  • Computer and Funds Transfer Frauds:

There is also possible coverage for Extortion, where staff might be threatened to lead them to steal or direct funds elsewhere.

Coverage can even extend when your business has a Pension or Employee Benefit Plan which may be subject to losses.

“Collis” today to talk about covering possible Crime exposures to your business

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