YOU ASK:

Why would a business need crime insurance?

WE ANSWER:

If you are a business owner, you are exposed to a high risk of being the victim of dishonest acts and suffer considerable losses as a result of certain criminal acts. Some of the losses, such as those committed by employees, may not be covered under a general commercial liability policy, but they are specifically covered under crime insurance.

Coverage Provided by Crime Insurance

Crime insurance offers protection in the event of a loss caused by certain specified criminal acts, as follows:

  • Property theft or destruction;
  • Burglary or robbery committed inside or outside the business premises by third parties;
  • Dishonest or criminal acts committed by employees;
  • Computer fraud;
  • Forgery of important business documents.

Unlike burglary insurance, which only covers the insured business for burglary that involves forced entry into the business premises, crime insurance does not have this restriction - every kind of robbery is covered, regardless of its nature and location.

Similarly, you can't expect from a commercial general liability policy to protect you in the event that an employee commits a criminal act since commercial liability insurance specifically excludes that situation. Crime insurance, on the other hand, provides a specific coverage in the event that a business employee commits a dishonest act, resulting in a loss for the business.

In addition to the above-mentioned provisions, crime insurance covers the insured business for any type of crime committed by third parties. Paper forgery and identity fraud, computer fraud, the loss of company property - these are just a few of the common losses a company can suffer. Crime insurance covers them all.

Last but not least, crime insurance can provide protection in the event of a non-material loss that cannot be replaced, such as important business information or records, which have been stored on a stolen business computer.

Criminal acts committed by the insured, indirect losses from a criminal act, losses caused by war or destruction of property by the authorities, are specifically excluded from crime insurance.

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