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What is Crime Insurance?

February 3, 2019

Crime insurance is a broad term used for insurance coverage that protects a person or business from damage or loss of property due to the obligation or other form of crime. This often includes losses incurred due to theft of physical property as well as theft of intellectual property as an employee hedge and sell the customer list of an employer to a competitor. In order to file a complaint, the crime must be among those in the form of the insurance contract.

 

Many employers maintain some form of crime insurance at all times

Many employers maintain some form of crime insurance at all times

This is especially true for companies operating in more than one country. Often, the company will secure national crime insurance for each country where the company has a physical presence. However, even a small business can obtain commercial crime insurance and thus provide protection against situations such as an employee choosing to steal the daily take instead of depositing money into the company’s operating account.

 

Crime insurance coverage

Crime insurance coverage

The extent of crime insurance coverage will vary depending on the scope and type of coverage desired by the customer. While virtually all crimes insurance will cover situations where the theft of furniture, computer equipment or machines necessary for the operation of the business takes place, it is often necessary to require cover for the theft of intellectual property. While a small business may not see the need for anything other than protection in the case of office equipment theft, it is often a good idea to at least consider what intellectual property rights might have been stolen and harming the business. For example, the small business owner should consider what harm might be due to the theft of the company’s customer list, accounting software files, and other information related to internal business behavior.

 

Crime insurance protection

Crime insurance protection

Today, crime insurance can provide protection for a wide range of losses. Along with theft of office furniture and computers, many policies will also provide cover in case of computer fraud, hacking or forgery of documents. Reading the fine print for a crime insurance package is important as it is not all insurance of this type will cover illegal actions taken by employees. If this is the case, the use of loyalty bonds on employees may be necessary, especially if the current governmental regulations prohibit the sale of crime insurance to cover losses caused by illegal actions of employees.

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