What is Commercial Crime Insurance Coverage?
Protecting a commercial business from the unexpected is paramount to the long-term health of any company. Unfortunately, the unexpected can involve internal or external forces you don’t expect, such as theft, fraud, forgery, embezzlement, or worse. This is particularly concerning with the rise in fraud cases expected to increase through 2023.
Fortunately, commercial crime insurance adds another level of protection in situations where it applies. Having a policy in place could make significant differences in safeguarding the time and money you should allocate to your business directly rather than wasting it on losses or legal fees.
If you’re hearing about commercial crime insurance coverage for the first time, let’s move forward by covering why it’s important, its benefits, and how we protect companies at JD Fulwiler & Company Insurance.
Why it’s Important to Have Commercial Crime Insurance
For starters, a commercial crime insurance policy could be your company’s only reimbursement from employee criminality committed against your customers or clients if they steal or damage something tangible.
For example, commercial crime insurance could reduce or prevent financial losses from an employee embezzling funds or engaging in fraud such as check forgery. Keep in mind that policies vary. Still, insurance like this generally covers fraud resulting in:
- Financial losses
- Stolen merchandise
- Physical assets or property damages
- Theft of securities
- And other abuses tailored to an individual policy
Unfortunately, those scenarios are increasing across the country, impacting businesses yearly. In one report, the Association of Certified Fraud Examiners (ACFE) noted that American companies experience losses greater than $400 billion annually from fraud alone, highlighting the importance of holding a commercial crime insurance policy.
Who Should Get Commercial Crime Insurance?
We recommend any business handling cash, selling valuable goods, or dealing with sensitive financial information to consult with a licensed agent to assess risk. However, it’s particularly beneficial to small businesses that could lose everything from a single act of criminality or those lacking a reimbursement strategy.
In particular, vulnerable businesses that should have a policy include the following:
- Banks, financial institutions, or investment firms
- E-commerce businesses and wholesalers
- Nonprofit organizations
- Retail stores and restaurants
- Businesses with certain reputational risks
- Companies handling sensitive financial information and securities
It’s important to note that a business can be ineligible for this type of insurance and that the list of qualified industries extends beyond those listed above. Therefore, any enterprise handling valuable assets or sensitive financial information should consider speaking with a licensed broker or insurance agent as soon as possible.
What Does a Commercial Crime Insurance Policy Cover?
Companies should note that many other kinds of insurance don’t typically cover commercial crimes. For example, a business owner’s policy may include limited or no coverage, while cyber liability insurance addresses theft from phishing scams, stolen passwords, and other cyberattacks.
On the other hand, commercial crime insurance offers the best safeguards against employee dishonesty and fraud to mitigate losses. At JD Fulwiler, we’re licensed in all 50 states and partner with businesses nationwide by providing commercial crime insurance covering:
- Burglary or Robbery
- Computer Fraud
- Employee Dishonesty
- Forgery or Alteration
- Theft of Money and Securities
- Funds Transfer Fraud
- Fraudulent Money Orders
- Counterfeit Paper Currency
How do I Get Commercial Crime Insurance?
It’s never too late for qualified businesses to become insured or find a partner that excels in your industry. The best way to enroll in a policy is to contact a licensed agent or broker to determine if commercial crime insurance fits your needs.
We use our expertise to offer individualized coverage tailored to particular fraud exposures and vulnerabilities. We’ve spent decades partnering with folks in dozens of industries to mitigate losses due to fraud, including commercial contractors, financial institutions, nonprofits, and many more.
Remember, we’re here for guidance if you need additional information regarding commercial crime insurance or wish to meet with a licensed team member.
Please schedule an appointment with JD Fulwiler to learn more about commercial crime coverage and how it can protect your company by contacting us today.
