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Commercial Crime Insurance

An innovative 'white-collar crime' policy protecting your business from internal and external criminal activities, ranging from theft to digital fraud.

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Coverage worth
50 Lakhs
at just
40,000*
annually

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Insurance Expert

Free Consultation

Insurance Expert

Free Consultation

50+ years of collective insurance experience

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5,000 Cr+ of cumulative risks insured

What Is

Commercial Crime Insurance?

There is a persistent issue of employee fraud across all industries. Whether it's an employee who has succumbed to temptation, a fraudulent scheme from a supplier, or even cybercriminals looking to exploit your trust, these threats can cause significant financial harm to your business. That's where crime insurance comes in.

Also known as commercial crime insurance, this policy provides a comprehensive coverage for criminal acts like employee dishonesty, computer fraud, identity theft, wire transfer fraud, or crimes committed by a third-party.

Apart from financial compensation, a crime insurance policy provides you the ability to respond promptly to criminal incidents, ensuring that your business's reputation remains intact.

Who Needs

Commercial Crime Insurance?

Whether you are a private company, a public company, or an NGO, an employee can steal from your cash reserves, or fall victim to an email phishing attack. They could obey fraudulent instructions to transfer your company funds to another bank account. Worse, they could collaborate with a third party to steal your company’s stock gradually over a period of time.

E-mail spoofing, phishing, theft, employee dishonesty, third-party fraud, forgery, and embezzlement impacts businesses of all types and sizes.

When are you vulnerable to digital theft and manipulation?

  • You do electronic transactions regularly
  • Your company has sensitive financial records
  • You have lots of customer information
  • Your team has part-time workers
  • Your office equipment is expensive

Why Get

Commercial Crime Insurance?

83% of all the organizations in India saw a rise in email phishing/spoofing attacks during the pandemic. It doesn’t matter if your organization is growing steadily or exponentially - monitoring everything and everyone can be extremely challenging irrespective of the size of your company. Having crime insurance ensures that your organization doesn’t suffer financially, and speeds up the recovery times for any business by reimbursing for losses of money, securities, and other tangible property.

Policy costs are affected by a variety of factors:

The number of employees in your business affects your crime insurance premium

A higher revenue flow means higher insurance premium

If your premiums are lower, your deductible will be higher, and vice versa

Basic security measures like strategically placed and unobtrusive cameras help underwriters assess risk better

Coverages & Exclusions in

Commercial Crime Insurance
CoveragesExclusions
In addition to dishonest acts like theft, funds transfer fraud, burglary, and property damage, crime insurance has now evolved to cover acts like email phishing, spoofing, and social engineering fraud. Here is the detailed coverages of crime insurance:
Theft
This coverage will protect your company from thefts committed by the employees of your business's assets. For example - an office boy stealing sample products from a store or a warehouse.
Fraud and Forgery
This includes stealing money or assets from an employer or organization that one is legally entrusted with. For example – an accountant or a cashier knowingly embezzling funds from the bank account or the cash register. Or a secretary signing your name on a document or a cheque.
Stealing from Customers
You are covered if your employee has stolen money or assets from a customer. For example – if an employee of a legal company collects extra money for company registration from clients.
Email Phishing
A spoofing attack on your employees that tricks people into giving out credit card numbers or bank account credentials, in order to steal money.

Losses caused by employees or third-party hackers committing fraud or theft via computers are frequently covered by commercial crime insurance. However, data breaches are often not covered by crime insurance. This is separately covered by the cyber liability insurance policy.

The policy also includes losses outside the business premises brought upon by a third-party criminal act.

In all such situations, the following costs can be claimed under the crime insurance policy:

Legal Representation Costs
These are defense costs incurred by the insured for providing documents or information required by the investigator during an investigation.
Public Relations Costs
It includes costs associated with managing and mitigating the negative impact on the company's reputation, arising out of the acts or incidents mentioned above.
Court Attendance Costs
It provides protection from reasonable costs and expenses incurred by the insured due to required attendance at court proceedings, hearings, trials, and depositions related to the defense of a claim.
Crisis Communication Costs
This includes reasonable costs incurred by an insured organization in attaining the services of any public relations (PR) or crisis management firm. This might be required to manage the public image of the business in such situations as fraud or lawsuits.

Crime Insurance Claim Examples

Incident 1Incident 2Incident 3
Claim due to Accountant’s Fraud
Incident
A member of senior management shared his credentials with the accountant for undertaking transactions in his absence. These credentials were misused to divert funds into his personal account and these transactions were also disguised in the book of accounts which went undetected.
Resolution
The insurer assisted the policyholder in filing recovery proceedings in overseas locations and appointed a loss investigator by utilizing its global network to confirm the extent of loss and expedite settlement.

About Commercial Crime Insurance

What is the jurisdiction/territory of the claim? Plus Icon
How does crime insurance work? Plus Icon
What are the most common crime insurance claims? Plus Icon
What are claims-made vs occurrences? Plus Icon
What is a loss sustained form? Plus Icon
What is an accidental occurrence? Plus Icon
Can you switch from claims made to occurrences? Plus Icon
What is subrogation? Plus Icon
What is an occurrence trigger? Plus Icon
Which insurance policy can offer protection against embezzlement? Plus Icon

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Your Story
Indore-based BimaKavach caters to the Business Insurance needs of Small & Medium Enterprises

This is an article by YouStory written by Palak Agarwal and published on October, 2022

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