Employee theft and other business crime coverage
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What is business crime insurance and who needs it?
Business crime insurance (also known as commercial crime or fidelity insurance coverage) protects businesses from losses related to employee theft, fraud, or other illegal or dishonest actions by third parties like consultants, freelancers, and contractors.
This insurance is for any business whose assets, for example, cash on hand, inventory, or securities, might be susceptible to employee theft or fraud. This type of insurance is particularly important for businesses or nonprofit organizations that work heavily with cash or online payments, and they can be especially devastating for small businesses with limited resources.
It’s important to note that crime insurance doesn’t cover crimes by the business partners or executives.
Have assets, like inventory or equipment, that can be stolen or damaged.
Risk customer injury or property damage due to your operations.
Why do you need business crime insurance coverage?
Here are a few reasons why you might need crime insurance to cover employee theft, fraud, and other illegal actions:
Provides peace of mind that your assets are protected from business-related crime.
Recuperates losses due to unforeseen circumstances like employee theft.
Bridges important coverage gaps between what is/ is not covered in a
commercial property insurance policy.
For example, just like when you order a meal at a fastfood restaurant, when you buy the meal deal, it's cheaper than if you buy your sandwich, drink, and fries individually.
Simplifies the insurance process and makes it easier for you to manage multiple coverages in one business owner’s policy.
It’s invaluable to have the peace of mind that you are properly protected through a range of coverages included in one business owner’s policy so you can focus on growing your business.
What risks beyond employee theft does business crime insurance cover?
Business crime insurance covers a wide range of risks your business faces.
Here are just a few examples:
Forgery and fraud: A member of a nonprofit organization could forge checks for deposit in their personal account.
Employee theft: A retail employee with after-hours access could steal a large amount of inventory.
Contractor crimes: A member of a contractor’s team could steal laptops while inside a client’s home.
If cyber criminals hack a medical outpatient facility (ex., a dentist office) and confidential patient information is compromised, the business owner would be liable.
If a clothing boutique stores its employees’ social security numbers in the cloud and that data is compromised, the store owner is at risk of legal action by the employees.
If a logistics company is victim to ransomware after an employee unknowingly downloads a suspicious attachment, the financial burden can be heavy without cyber insurance.
What is the cost of business crime insurance for employee theft?
The average annual cost of a business crime insurance policy can vary but generally ranges from $500–$5,000 per year for a small business. That’s minor compared to the potential cost of employee theft. Here are a few factors that can influence the price of a business crime policy for your business:
What other coverage might a business need?
Though business crime insurance covers some of today's most common business risks like employee theft and fraud, it is very specialized. Most businesses require more than that to protect themselves. Here are just a few other common examples of risks and coverages and why you may need them to protect your business:
Workers’ compensation (WC)
Workers’ compensation insurance protects employers and employees, covering financial needs in case of any workplace illness or injury. This insurance is required by law in most states.
Cyber insurance
A cyber insurance policy protects you against the consequences of a cyber incident, such as data breaches, network security failures, cyber extortion (ransomware, for instance), and other cyber attacks.
Commercial auto
A commercial auto policy covers vehicles used for business purposes, including cars, trucks, vans, and other vehicles owned or leased by your business.
General liability insurance (GL)
Covers a wide range of risks and can shield you from financial losses and legal expenses from customer injuries or damage to their property.
Professional liability insurance
Protects professional service providers when their advice or actions could have significant financial or health-related consequences.
How to get business crime insurance or other coverage
By now you understand how important it is to be properly insured. What’s next?
Call (380) 225-5242 to connect with an experienced insurance agent who understands the nuances of your business and industry.