Commercial Crime Insurance

What is Commercial Crime Insurance?

Commercial crime insurance is a type of insurance policy that provides coverage for losses resulting from criminal acts such as theft, fraud, embezzlement, and other types of financial crime committed against a business. The policy is designed to protect businesses from financial losses due to the criminal activities of their employees, customers, or third-party vendors.

Commercial crime insurance typically covers a wide range of crimes, including forgery, robbery, burglary, employee theft, computer fraud, and funds transfer fraud. Depending on the policy, it may also cover losses resulting from counterfeit currency, credit card fraud, and other types of financial fraud.

The policy can be tailored to the specific needs of a business, and coverage limits and deductibles can be adjusted accordingly. Commercial crime insurance is often purchased by businesses that handle a significant amount of cash, maintain large inventories, or have sensitive customer information that could be compromised in a data breach or cyberattack.

It's important to note that commercial crime insurance is not a replacement for strong internal controls and risk management practices. Instead, it should be viewed as a complement to these measures, providing an additional layer of protection against the financial losses that can result from criminal activity.