Many business owners assume that the coverage afforded under a commercial property package (CPP) or business owner’s policy (BOP) protects the company from criminal acts. Unfortunately, some of the most common types of crime risks are not covered in these standard policies, which is why many businesses should consider adding dedicated commercial crime insurance.
What’s Not Covered
A CPP or BOP typically excludes coverage of losses involving money and securities. The loss of money stolen from a cash register, to make one obvious example, often is not covered. Other common claims arising from criminal acts that are not usually covered include:
- Theft of money outside the business premises
- Theft by a company employee or vendor
- Theft of a customer’s property by an employee
- Claims arising from forged checks or documents
- Computer or wire fraud
Does Your Company Fit the Profile?
A commercial crime insurance policy fills in the coverage gaps and will pay (up to prescribed limits) a certain amount of legal fees needed to pursue such claims. How to know if you need the extra coverage? Does your company:
- Participate in check, cash or credit card transactions?
- Spend limited amounts on security?
- Employ part-time and/or volunteer help?
- Rely on employees to handle company and client finances?
- Have inventory that can be easily stolen by staff?
If your answer is yes to even one of these questions, you should strongly consider adding commercial crime insurance. Contact an experienced insurance agent today.