Fidelity Crime Insurance

Fidelity Insurance, often referred to as “crime” insurance, protects your company from loss of money, securities or other property resulting from employee dishonesty, embezzlement, forgery, burglary, robbery, computer fraud, counterfeiting, wire transfer fraud, and various other criminal acts.

You may ask, Does my Errors and Omissions Policy provide any protection for me for any of the acts listed above?“

The Answer is “NO!” All the acts listed above are deliberate. There was no error or mistake. The theft, forgery, computer fraud, etc. was not an accident, it was intentional. Professional Liability Policies do not provide coverage for “deliberate acts.”

Sobering Facts

  • 80% of Workplace Crime is carried out by employees.
  • Over one third of employee fraud is committed by a manager.
  • One in four employees committing fraud against their employer has been with the company for OVER 10 years.
  • Only one in three of those who witness a workplace crime bother to report it.
  • Nearly one in three business failures in the US is caused by employee theft.

Therefore, having a fidelity policy protecting your business against employee dishonesty certainly seems like a prudent idea.

However, employee dishonesty is only one area which might cause concern. What about that vast and growing expanse of commerce known as the Internet? We recently heard of an insured who had their escrow account “hacked,” and the funds for a pending real estate transaction vanished completely. Without a Crime Policy in place, the client nearly went out of business by having to “cover” the shortfall for a pending closing.
What if that same thing happened to you and your company? Would you be in a position to replace the missing funds? Might such a circumstance put your entire business in jeopardy? For most small businesses, the answer is YES.

“Does an Employee Dishonest Policy protect me against computer fraud?“

Not necessarily, as some policies are strictly limited to acts by employees and not third parties. Call us, and we will guide you to the proper combination crime policy and endorsements you need to cover you and your employees and provide protection for third parties entrusting funds to you for disbursement.

Brian H. Merriam, CPCU, ARM, AAI
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