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.