According to the most recent FBI Crime Clock, a property crime occurs every 3.5 seconds. A burglary occurs every 15 seconds and a robbery occurs every 1.5 minutes. With statistics like these, it’s only a matter of time before you or your business may be victimized by crime. How can you protect yourself?
Protection Comes in Many Forms
While the obvious answer to protection may be an alarm system or a safe, these methods aren’t foolproof. Crimes occur in even the most heavily protected businesses.
Once a crime occurs, having crime coverage insurance can help you get back up and running as soon as possible. There are different types of insurance for different types of crime, so it is important to know which your business may need.
Crime coverage insures against criminal activity involving money, securities, fraud, embezzlement and crimes that do not include physical property such as laptops, artwork, furniture, televisions, etc. (these would be covered under a Commercial Property or package insurance policy). Some package policies include a sublimit for “crime coverage” but the definition varies widely from insurance carrier to insurance carrier and policy to policy.
Do You Have The Right Coverage?
There is no industry standard policy for crime insurance coverage, so most coverage is written on manuscript basis. Limits and coverage can differ between industries and even locations. Deductibles are based on the amount of coverage provided and can range from 5-10% or more, and risks are rated individually rather than by class.
Coverage to consider:
- First-party coverage. Also called “employee theft”.
- Third-party coverage. Crime committed by someone who is not an employee.
- Burglary. Usually occurs at night after closing when no one is around.
- Robbery. Usually occurs during the day when employees are around, and can involve weapons.
- Off-premises coverage. Can include burglary or robbery, usually of bank deposits being transported by employees or owners.
- Computer fraud. This can include funds transfer by employees and non-employees, but check the policy definitions.
- Counterfeit money.
- Forgery or alteration. Checks forged or altered by amount or payee.
This is not an exhaustive list, and there are many types of crime coverage to consider. Contact Hayes Brokers today for a risk management analysis to help determine the coverage you need.