Whether from outside of or within your own organization, crimes can pose a major threat to your business. Fraud, forgery, embezzlement, property damage, theft, and more can all lead to lawsuits and severe losses. Fortunately, crime insurance helps you manage these loss exposures.
1. Employee Dishonesty Coverage
This type of crimes insurance protects against losses due to employee dishonesty, such as theft of securities, cash, or property owned by the company. Most employees are likely to be loyal to your company, or at the least, respect the law and company rules. However, there is always the possibility that a small minority will not. Even a small number or one employee breaking the rules can translate to major financial problems, so it might be better to hedge against this risk than leave your business exposed.
2. Burglary and Robbery Coverage
Some businesses are more likely to be the target of burglary and robbery than others. For example, businesses that have highly valuable assets on hand, such as jewelry stores and banks, are prime targets. If your business has a lot of value at your company location, this type of coverage may be especially important for you. However, keep in mind, robbers may still target stores without hundreds of thousands or millions of dollars of assets on location. Gas stations for example, are frequently targeted. Therefore, based on the nature of your business and the risk factors, it may be worth considering burglary and robbery insurance.
3. Computer Fraud Coverage
In the modern day, computers are more relevant than ever before to company operations. While cyber security does exist to protect companies, it is not always 100 percent perfect. Hackers can still sometimes access a company’s computer systems. Depending on their motive, assets, money, information, and other valuable things may be stolen all from a distant location over a computer. In a worst case scenario, corporate accounts may be completely compromised and have their funds drained. Computer fraud coverage protects against losses from hacking situations as well as other circumstances in which computers are used to commit crimes against the company.
4. Forgery and Alteration Coverage
Forgery and alteration refer to the illegal tampering or altering of legal or monetary documents, such as checks. Although many measures are in place to prevent these types of crimes, they still do happen. For example, someone in your store may notice a canceled company check in the trash. In this case, they could retrieve it to write themself a check worth thousands of dollars while forging the signature. If no one at your company notices, you could be out a significant amount of money in one fell swoop. However, if someone does notice and you do have forgery and alteration coverage, then the losses could quickly be recuperated.
5. Theft, Disappearance, and Destruction of Money and Securities Coverage
This type of commercial crimes insurance is important because money can just disappear from your company building or from the possession of an agent of your company. In these circumstances, it is not necessarily employee dishonesty, or a robbery. Money may simply disappear, and you might not find out who did it or why. This type of event can be a major hassle for your business. Money can also be destroyed—for example, if someone criminally puts it through a paper shredder. The particular coverage depends on the individual insurer; however, it can increase the resilience of your business.
It may not be a comforting thought to think about the possibility of crimes being committed against your business. However, they do happen, and they can lead to major financial losses when they do occur. So when you are evaluating the business insurance needs for your company, it may be worth your while to look into crimes insurance. (Read 6 Types of Insurance All Businesses Should Have to see what insurance your business cannot do without.) A wide variety of coverage is available on the market, and the right policies help ensure your business can continue despite any unfortunate events.