When you think of a crime being committed at your business, the first thing you probably think of is a theft. The good news: your Special Form including Theft property policy covers theft. The bad news? It doesn’t cover other types of crime.
What other types of crime? I’m glad you asked! Things such as employee theft, forgery, robbery (but isn’t that theft?), even computer fraud, are all types of crime that your property policy doesn’t cover.
Isn’t All Theft Just That – Theft?
The Commercial Property Causes of Loss – Special Form (CP 10 30) does include theft, but contains the following exclusion:
The policy excludes coverage for dishonest or criminal acts performed by anyone within your organization at any time. Even leased employees are excluded.
In addition, only certain types of physical theft are covered by a commercial property policy. A breakin must show signs of forced entry to be considered theft. If your employees take things during business hours and hand them off to cohorts “on the outside”, their crimes do not fulfill the definition of property theft without forcible entry.
Items stolen must also be physical items. Commercial property policies do not cover money and securities, or property other than money or securities that have intrinsic value. Money and securities are defined as currency, coins, current banknotes, traveler’s checks, money orders, tokens, tickets, revenue and other stamps, as well as credit card receipts. None of these items are covered under a standard property insurance policy.
What Does Crime Insurance Cover?
While limited in scope, Crime Insurance Policies cover 8 types of crime:
- Employee Theft – will pay for the loss of money and securities as well as property other than money and securities resulting from a theft committed by an employee.
- Forgery or Alteration – will pay for loss resulting from alteration of checks, drafts, promissory notes or similar documents.
- Theft of Money & Securities Inside the Premises – will pay for the loss of money and securities inside your business premises resulting not only from theft but also from disappearance or destruction.
- Robbery or Safe Burglary of Other Property Inside the Premises – will pay for loss or damage to other property caused by a robbery or safe burglary.
- Theft Outside the Premises – will pay for the loss of money and securities and other property while in the custody of a messenger (even an employee) while outside your business premises.
- Computer Fraud – will pay for the loss of or damage to money, securities and other property resulting directly from the use of any computer to fraudulently transfer that property from inside the premises or a banking premises to somewhere else.
- Funds Transfer Fraud – will pay for the loss of funds due to a fraudulent instruction to transfer funds.
- Money Orders and Counterfeit Paper Currency – will pay for the acceptance in good faith of fraudulent money orders or counterfeit money
Any or all of the above coverage options may be chosen, as well as a separate amount and deductible for each. Commercial Crime policies are written to order for a business or association.
Do You Have Crime Insurance?
Crime insurance coverage can be written in a few different ways: as a part of a property policy, as a part of a business owners package policy (BOP), or as a stand-alone policy. If your coverage is written as a throw-in coverage under a property policy or BOP the limits may not be adequate for your business.
Call to schedule an appointment for a risk management analysis with one of our knowledgeable Hayes brokers. They can help you get the crime coverage your business needs.