What Does Forgery Mean?
Forgery is the criminal act of altering or imitating a document, check, or other negotiable instruments, or the use of a signature without authority from whose signature it purports to be, with the intent to defraud or deceive another.
In terms of insurance, forgery is a risk covered by a forgery or alteration insurance as well as an employee dishonesty insurance policy.
Insuranceopedia Explains Forgery
Common instances of forgery include the drawing of a check or making of a note in one’s name, payable to a fictitious person; drawing of checks or making of notes executed with forged endorsements; and unauthorized altering of the amount in a check or note.
Forgery is a crime that could bring about millions of dollars in losses to a company. A business owner may purchase a forgery or alteration insurance or an employee dishonesty insurance to protect their company. The insurer agrees to compensate the company or a third party who has become a victim as a result of the criminal act.