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Crime Insurance:
Crime insurance is said to fall in the category of fidelity coverage. Fidelity insurance might also refer to the loss caused by the dishonest ways of the employees. Crime insurance coverage specialist's advice people to ensure that they are adequately insured against:
- Credit card fraud
- On-premises theft
- Off-premises theft
- Kidnap and ransom
- Computer theft
Many companies have efficient crime fidelity insurance programs. Crime insurance coverage helps to protect the following organizations, among others:
- Financial institutions
- Manufacturers
- Service industries
Crime insurance policy covers losses to a business organization due to criminal activities. The term 'criminal activity' is exhaustive and refers to situations ranging from employee dishonesty to burglary and robbery, embezzlement, fund transfer fraud, computer fraud and forgery. Small businesses are particularly vulnerable to these crimes and can suffer severe financial consequences due to employee dishonesty. According to a research conducted by the Association of Certified Fraud Examiners (ACFE), business organizations in the United States lose approximately $400 billion per annum to employee fraud, and an average organization suffers a loss of about 6% of its total annual revenue due to misdemeanors by its employees. These facts prove that white collar crime is on the increase. It should be taken into account that the given figures do not include crimes like robbery and burglary. Thus, the statistics mentioned above coupled with the fact that crime related losses are not covered by property insurance policies, makes crime fidelity insurance coverage protection an absolute necessity for most businesses. The liabilities covered by fidelity insurance coverage are:
- Money and Security Coverage - Covers losses due to burglary and destruction.
- Employee Dishonesty Coverage - Covers losses due to dishonesty of employees.
Many insurance policies combine both these categories. Business can opt for either a mono line policy for customized liability coverage or a package policy offered by insurance agencies. The premium for crime insurance coverage is decided by the insurance agencies based on the criminal track record of the organization. A small-to-mid-sized organization pays an average premium of about $1000 for a $100,000 insurance coverage. Most of the insurance agency's websites have online forms, where details of the business can be entered for the approximate premium to be calculated. Hacker insurance also falls under the crime insurance. Many companies seek the hackers insurance to protect themselves and their customers online. Business owners should always anticipate emergencies and should have a plan in place to tackle a crime or burglary occurring in their office. This is where an insurance policy will help. The victim of burglary should always make sure that the burglary in his office or house has been registered with the police. This is when he becomes eligible for the fidelity insurance policy.
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