In a cut-throat and dynamic business world, fraud and financial crimes have become far more sophisticated than ever before. Be it internal employees, external cybercriminals, and unknown fraud networks- risks originating from anyone of these can drain a company’s finances in minutes. Ranging from fake fund transfers and inventory thefts to counterfeiting and employee dishonesty- such threats are real and have their presence across industries.
Crime insurance is, therefore, an essential weapon in a company’s defense strategy. It supports the companies’ recovery of financial losses resulting from crimes such as theft, forgery, fraud, embezzlement, and cyber enabled misuse. Every responsible business leader who wants to secure the financial integrity of his organisation invariably turns towards specialized insurance providers and experienced insurance brokers to build a trustworthy protection plan.
This guide covers the topics you need to understand if you want to buy crime insurance for your business . Here we will look into crime insurance coverage, exclusions, claims, real-life exposures, and the best brokers and insurers offering crime insurance solutions in India.
Here we go!
Crime Insurance: An Overview
Crime insurance is a commercial insurance solution that protects companies from direct financial losses due to criminal activities committed inside or outside the organization. It is different from any other general insurance policy as it focuses only on the dishonest or fraudulent behaviors that can impact company finances.
It is extremely valuable for businesses that handle:
- Cash or digital payments
- Inventory or high-value assets
- Vendor transactions
- Sensitive data and banking processes
If you have employees and/or are working with third parties, then you are exposed to the risk of commercial crimes.
Importance of Crime Insurance for Modern Businesses
The modern business ecosystem is exposed to new-age crime risks every single day. Financial compliance studies show that more than 70% of corporate frauds in India are of internal nature . This means, such frauds are committed usually by trusted employees or middle-management.
Some primary risk drivers can include:
- Digital payment fraud and cyber enabled fund theft
- Vendor and invoice manipulation
- Misappropriation of inventory and goods
- Forgery and counterfeit of cheques / financial instruments
- Social engineering fraud that target finance teams
When fraud hits, financial loss is only a part of the entire issue. The company may also suffer reputational damage, regulatory complications, and operational disruptions, and such damages can come with long-term consequences. Crime insurance is the solution which enables that the burden of these losses is not carried solely by businesses.
Here is an example to show how a crime insurance policy comes to rescue a business:
The management of a manufacturing company finds out that an employee has been diverting finished goods to a fake vendor network, thus causing a loss of ₹75 lakh over several months. Thankfully, the company had a commercial crime insurance policy which reimbursed the loss amount. Had there been no crime insurance, the company would have had no other option but to absorb the entire financial damage itself.
With crime coverage:
- The insurer pays the amount of the loss
- Forensic teams can identify the timeline of the fraud
- Operational systems are protected from future misconduct
Crime insurance protects financial stability — especially when fraud remains uncovered for long.
Who Needs Crime Insurance?
Every company that deals in finance, assets, or data should buy crime insurance, especially:
- Retail and wholesale trading businesses
- Manufacturing industries with large inventories
- BFSI institutions and fintech companies
- IT & SaaS platforms managing digital transactions
- Logistics and supply chain companies
- SMEs with limited internal fraud controls
- Hospitality and healthcare service providers
If money flows through your business, crime risks follow.
Key Risks Covered Under Crime Insurance
A comprehensive crime policy typically includes:
- Employee Theft
Loss caused by employees stealing cash, digital assets, or goods. - Fraudulent Fund Transfers
Unauthorized online transactions initiated via hacking or deception. - Forgery & Counterfeit
Loss from forged documents, cheques, securities, or payment instruments. - Robbery & Burglary
Theft occurring inside premises or during asset movement. - Social Engineering Scams
Manipulation attacks tricking teams into releasing funds. - Credit Card & Digital Payment Fraud
Loss due to unauthorized access to payment instruments. - Third-Party Crime
Fraud or theft committed by vendors, partners, delivery agents, etc.
This protection ensures both physical and digital crime exposures are covered — keeping core finances safe.
What Crime Insurance Does Not Cover
Common exclusions include:
- Fraud involving top leadership or owners
- Known or suspected losses not reported on time
- Indirect operational losses (loss of profit, penalties)
- Non-criminal financial errors
Review your insurance policy thoroughly to avoid surprises during claims.
How Crime Insurance Claims Typically Work
The faster a claim is initiated, the higher the chance of successful recovery. Here’s the usual process:
- The business detects suspicious activity or financial loss
- Insurer is notified immediately along with supporting proofs
- Investigation and forensic review begins
- Insurer validates incident and criminal involvement
- Approved compensation is settled as per the policy terms
Timely reporting is essential — delays may impact payout eligibility.
Top 3 Insurance Brokers to Buy Crime Insurance in India
Buying crime coverage requires technical understanding of internal controls, transaction processes, sector-wise fraud risks, and insurer pricing. Expert insurance brokers help businesses secure accurate protection while handling claims professionally.
Here are India’s best crime insurance specialists:
1. BimaKavach
BimaKavach supports SMEs, growing enterprises, and corporates with advanced crime risk analysis and tailored policy structures. They collaborate with top insurers to ensure strong pricing, comprehensive protection, and practical claim guidance.
Key Highlights
- Strong domain knowledge around fraud-prone industries
- Helps secure coverage for social engineering & digital theft
- Dedicated claims assistance
- Ideal for MSMEs and tech-enabled companies
2. SecureNow
SecureNow delivers digital advisory services and simplifies the crime insurance purchase process for businesses dealing with complex internal risks.
Key Highlights
- Quick quotation and comparison assistance
- Good claims dispute support
- Flexible policy structuring for varied sizes
- Exposure mapping for internal finance fraud
3. PlanCover
PlanCover offers reliable insurance support for startups, retail operators, and distribution-driven businesses frequently exposed to vendor or goods-related fraud.
Key Highlights
- Suitable coverage for multi-point operations
- Guided onboarding for first-time buyers
- Wide insurer network access
- Smooth documentation and service
Top 3 Insurers in India Providing Crime Insurance
Not every insurer specializes in crime-related product development, but these top insurers offer strong security against today’s financial crime risks:
1. TATA AIG General Insurance
Backed by strong global crime expertise, TATA AIG provides wide-range protection including employee dishonesty, forgery fraud, and authorized push payment scams.
Key Highlights
- Advanced crime analytics support
- Covers physical and digital theft
- Strong claim processing structure
- Extensive industry-specific solutions
2. ICICI Lombard General Insurance
ICICI Lombard focuses on scalable crime insurance solutions for MSMEs, corporates, and supply chain operators with multiple fraud-prone touchpoints.
Key Highlights
- Third-party & vendor crime protection
- Fast claims response and documentation
- Customizable risk coverage
- Strong legal and forensic support network
3. HDFC ERGO General Insurance
HDFC ERGO offers comprehensive policies for modern digital-centric businesses, ensuring coverage for finance fraud and internal crime attempts.
Key Highlights
- Social engineering & online fraud support
- Simple policy onboarding
- Strong retail and SME servicing capabilities
- Efficient claim recovery mechanisms
How to Choose the Right Crime Insurance Policy
Before investing, evaluate:
- Cash flow risk in your industry
- Internal fraud prevention controls
- Number of employees & access permissions
- Daily vendor management exposure
- Inventory movement monitoring
- History of financial suspicion or losses
A fraud-risk audit conducted with the help of expert brokers often leads to more informed purchase decisions.
Final Thoughts
Crime events may happen anywhere and even the most trusted and well regulated surroundings are not spared from its vicious grip. And when this happens, the damage can be quite disruptive and emotionally draining. Hence, businesses require strong protective measures to survive in this fraud-driven world.
Well designed crime insurance policies often offer, in addition to financial recovery, risk investigation support, operational continuity assurance, and confidence for future growth. As a matter of fact, wise companies should secure their finances before fraud takes advantage of a loophole.
Why should BimaKavach be your first choice?
If your business is looking to buy crime insurance, it is highly imperative that you should trust only the specialists.
BimaKavach brings:
- Tailored crime insurance solutions built for Indian businesses
- Affordable pricing, negotiated with top insurers
- Complete assistance — from paperwork to claims
- Focus on fortifying your financial backbone
Strengthen your organization’s defense against uncertainty. Choose smart protection. Choose BimaKavach.
