WHAT ACTS DOES CRIME INSURANCE COVER?
Crime insurance, also called “fidelity insurance”, compensates business entities for losses related to criminal acts either on behalf of employees, vendors, or random acts by the public. These acts include:
-employee theft of the company or clients’ property
-kidnap and ransom
-personal accounts forgery
-employee dishonesty regarding money or property
-theft of equipment both inside and outside the premises
-theft of money from safes
-money order or counterfeit currency fraud
Additionally, expenses related to investigating the crime are covered as well as defense costs in the event the employer is named in a suit as a result of a crime.
WHO IS COVERED BY CRIME INSURANCE?
All employees are covered by crime insurance- this includes temporary employees, leased employees, consultants and guests, volunteers, and interns. Intentional acts of dishonesty or fraud on behalf of owners are not covered.
Certain classes of businesses, such as financial institutions and jewelry stores are not considered insurable under a crime insurance policy due to the high probability of theft.