What does Commercial Crime Insurance Cover?
As a small business owner, you’re probably thinking about your business’s biggest liability: the employees. You’ve likely heard horror stories from other small businesses about how an employee stole from them. But did you know you also need to protect your business against employee fraud? This extends well past your typical property insurance. Employee forgery and embezzlement happen more often than you think, and these cases can be devastating for the victim company. If you run a retail store, restaurant or any other type of service-based organization with employees who handle money on a regular basis, it’s essential that you have a commercial crime insurance policy in place so your assets aren’t exposed if one of those employees gets into trouble while working at your shop or restaurant.
Forgery is a form of fraud. Forgery can be committed by anyone who has access to the company’s systems, including employees, contractors, and vendors.
If you’re running a business, you probably already know that a good business insurance policy is an important part of your business plan. But what kind of insurance do you need?
When it comes to commercial crime insurance, there are three types of coverage you should be aware of:
Forged Checks: This type of coverage protects against losses caused by fraudulent checks that are either written or altered. It also covers losses that occur when someone tries to cash a forged check.
Unauthorized Credit Card Changes: This type of coverage protects against unauthorized changes made to your company’s credit card numbers and/or expiration dates.
Hiding Assets in an Attempt to Avoid Paying Creditors: This type of coverage protects against the loss or destruction of assets that may have been hidden from creditors during bankruptcy proceedings so that creditors could not access them.
Employee fraud is the largest single source of losses to businesses. It can be committed by employees, contractors, or even vendors who have been granted access to your business. Employee fraud can take the form of stealing money, equipment, supplies or services. Employees can also steal confidential information and trade secrets or commit fraud by overcharging for work they perform while on the job.
In addition to these common types of employee fraud listed above, there are countless others as well — but if you suspect that your company is experiencing any kind of financial loss due to someone within your organization, then it’s time for you to contact an expert commercial crime insurance broker immediately!
Employee Embezzlement is a crime that involves the theft of money or property by an employee. It can be committed by anyone but is most often committed by employees.
Employee embezzlement can devastate a business, especially if it goes undetected for some time and the employee has been stealing for an extended period.
Do I Need Commercial Crime Coverage?
We hope this article has given you a better idea of whether or not you need commercial crime insurance. As we said, it’s important to talk with your insurance provider about what coverage options are available and how they can help protect against losses related to employee theft, embezzlement and fraud.
Let Nickerson Insurance Systems, Inc. answer your commercial crime insurnace questions.
If your office is burned or a thief steals your goods, your business should not be punished. Give us a call and talk to our agents about what Nickerson can do for you and your company. We want to make sure that you are always prepared for any issues that may happen within your business.