Commercial Crime Coverage

Companies are susceptible to many external and internal threats in the course of day-to-day operations. Business owners are keenly aware of the threats from re-work and lawsuits associated with unsatisfied customers. However, there are additional unseen threats and areas of exposure that lurk nearby but often go unnoticed. Internal and external theft and the associated fallout can be mitigated by crime coverage insurance.

When Employees Attack

Dishonest employees are a company’s worst nightmare. By the time losses are discovered, they are often exponential and ongoing. Fraudulence can range from theft of tangible property to pilfering from petty cash and embezzling company funds. If the employee’s role includes access to client funds, theft and breach of fiduciary responsibility might also be a concern. Employees may have mishandled consumers’ information carelessly or with fraudulent intent, hence creating exposure for the company.

Risk Management

Companies are advised to have a risk analysis performed to determine areas of exposure. Small businesses are particularly prone to internal risks since lack of resources minimizes segregation of duties. Forgery, document alteration and misappropriation of company and client assets are all areas where workers can potentially take advantage of their employers. Crime coverage insurance may vary by state. Coverage details should be discussed with your agent during a risk analysis.

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