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 (see The Basics of Business Insurance to find out what other types of insurance you might need).
1. Employee Dishonesty Coverage
It's likely that most of your employees are loyal to your company or, at least, respect the law and company rules. However, there is always the possibility that a small minority will not. Even a single employee breaking the rules can translate to major financial problems, so it better to buy employee dishonesty coverage and hedge against this risk rather than leave your business exposed.
2. Burglary and Robbery Coverage
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 that robbers may still target stores even if they don't keep hundreds of thousands 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
Computers have become central to many company operations. While cyber security services and products offer some measure of protection to companies, they are not always 100 percent perfect. Hackers may still be able to access a company’s computer systems. Depending on their motive, they may steal assets, money, information, or other valuable things, all from a distant location. In a worst case scenario, corporate accounts may be completely compromised and have their funds drained. Computer fraud coverage protects against losses from hacking 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. They could then retrieve it to write themselves a check worth thousands of dollars and forge 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. 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. 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 find out what insurance policies 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.