What Is Crime & Fidelity Insurance?
Crime & Fidelity Insurance helps protect businesses against certain financial losses caused by theft, fraud, forgery, and employee dishonesty.
Unlike Commercial Property Insurance, which protects physical assets such as buildings and equipment, Crime & Fidelity Insurance focuses on financial losses involving money, securities, and other covered property.
For many businesses, one dishonest employee or sophisticated fraud scheme can result in significant financial losses. Crime & Fidelity Insurance helps provide protection against many of those risks.
What Does Crime & Fidelity Insurance Cover?
Coverage varies by carrier and policy, but Crime & Fidelity Insurance may include protection for several common financial crime exposures.
Employee Theft & Dishonesty
If an employee steals money, inventory, or other covered business property, Crime & Fidelity Insurance may help reimburse your business for covered losses. Examples include:
- Embezzlement
- Theft of cash
- Theft of inventory
- Payroll fraud
- Unauthorized financial transactions
Forgery & Alteration
Coverage may help protect your business from financial losses resulting from forged:
- Checks
- Promissory notes
- Drafts
- Written payment instructions
Computer Fraud
If criminals gain unauthorized access to your computer systems and fraudulently transfer money, certain policies may provide coverage for covered losses.
Funds Transfer Fraud
Cybercriminals increasingly target businesses by impersonating executives, vendors, or financial institutions. Crime Insurance may provide coverage for certain fraudulent electronic fund transfers, subject to policy terms and conditions.
Money & Securities
Coverage may help protect cash, checks, and securities against covered theft occurring on your premises or while in transit.
Who Should Consider Crime & Fidelity Insurance?
Crime & Fidelity Insurance can benefit businesses of nearly every size, especially those that handle money, manage client funds, or rely on employees with financial responsibilities.
Businesses that commonly purchase this coverage include:
Any business with employees who handle accounting, payroll, banking, or financial transactions should consider Crime & Fidelity Insurance.
Common Crime & Fidelity Claims
Employee Embezzlement
A trusted employee secretly diverts company funds into a personal bank account over several years before the theft is discovered.
Forged Checks
A former employee forges company checks after leaving the business, resulting in significant financial losses.
Wire Transfer Fraud
A bookkeeper receives what appears to be an email from the company president requesting an urgent wire transfer. The email is fraudulent, and company funds are sent to a criminal.
Theft of Cash
A business experiences a break-in where cash receipts are stolen from the office safe before they can be deposited.
Did You Know?
According to industry studies, employee theft and occupational fraud can go undetected for months—or even years—before they’re discovered.
Even businesses with strong internal controls can become victims of fraud. Crime & Fidelity Insurance can provide an important financial safety net when preventive measures fail.
Frequently Asked Questions
Is Crime Insurance included with a Business Owner’s Policy?
Some Business Owner’s Policy (BOP)s include limited crime coverage, but many businesses require higher limits or broader protection through additional endorsements or separate policies.
Is Crime Insurance the same as Cyber Insurance?
No. Cyber Liability Insurance primarily addresses data breaches, ransomware, and network security incidents. Crime Insurance focuses on financial losses resulting from theft, fraud, forgery, employee dishonesty, and certain fraudulent financial transactions. Many businesses benefit from carrying both coverages.
Does Crime Insurance cover employee theft?
Yes. Employee dishonesty is one of the primary reasons businesses purchase Crime & Fidelity Insurance, subject to policy terms and conditions.
Does Crime Insurance cover wire fraud?
Many policies provide coverage for certain types of fraudulent electronic fund transfers, although coverage varies significantly between carriers. We’ll help you review the available options.
How much Crime Insurance do I need?
Coverage depends on factors such as:
- Annual revenue
- Cash flow
- Number of employees
- Financial responsibilities
- Access to banking systems
- Internal controls
Our advisors can help determine appropriate limits for your business.
Related Commercial Insurance Coverages
Crime & Fidelity Insurance is commonly paired with:
Together, these coverages help protect your business from both physical and financial risks.
Why Choose Generazio Associates?
Financial crime continues to evolve, and businesses of every size face increasing exposure to fraud, theft, and employee dishonesty.
At Generazio Associates, we help business owners identify financial risks that are often overlooked and recommend insurance solutions tailored to their operations, industry, and internal controls.
As an independent insurance agency, we compare options from multiple commercial insurance carriers to help you build a comprehensive insurance program that protects your business from today’s evolving threats.
When you work with our team, you’ll receive:
- Access to multiple commercial insurance carriers
- Guidance on financial crime exposures
- Customized coverage recommendations
- Responsive local service
- Experienced commercial insurance advisors
Request a Crime & Fidelity Insurance Review
Protecting your business means protecting more than your building and equipment—it also means protecting your finances.
Contact Generazio Associates, Inc. today for a complimentary Crime & Fidelity Insurance review. We’ll evaluate your current coverage, discuss your financial exposures, and help you build an insurance program designed to protect your business from employee theft, fraud, and other covered financial crimes.
