Important Basics of Crime Insurance to Secure Your Business

TLTR: This blog explains crime insurance, what it does and doesn’t cover, and how you can benefit from it. Private homes are of course vulnerable to crime. But businesses are at risk of all the bad news that can befall you at home plus much more. If you’re a business owner, having the right kind of insurance coverage is essential.

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What Does Crime Insurance Cover?

Crime insurance covers losses stemming from crimes committed by employees or individuals who don’t work at your place of business. Generally, these losses are not covered by a typical commercial property insurance or a business owners policy.

The coverage offered by this policy includes:

  • Vandalism
  • Theft of money, property, and inventory within your premises or while in transit
  • Fraudulent monetary transactions
  • Forgery of business documents and signatures on official documents
  • Social engineering fraud

Although insurers often include crime insurance in a business-oriented policy bundle, businesses can purchase crime insurance as a stand-alone policy to add to existing insurance policies. Doing so allows a business to address specific types of crime it wants covered. This is particularly useful if you know which losses and risks your business is particularly vulnerable to.

A good reason for businesses to consider crime insurance is the current popularity of the remote working model. According to Willis Towers Watson, computer fraud and social engineering schemes have been increasing, given the reliance on remote work access to company systems provided to employees.

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What Does Crime Insurance Not Cover?

Although the policies offered by insurers can vary, it typically does not cover the following:

  • Salaries, commissions, fees, and associated lost income
  • Property damage caused by accidental fire
  • Data theft such as stealing a company’s sales records, client information, or intellectual property
  • Losses stemming from business interruption or potential loss of income
  • Losses caused by employees after the insured has received evidence of the crime committed by that employee
  • Legal expenses related to employee crime
  • Expenses incurred while compiling evidence of the crime, proof of loss, and so forth
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Why Buy Crime Insurance?

It should be apparent by now that crime insurance offers you substantial financial protection and the peace of mind that comes along with it.

According to the Federal Trade Commission, there were 4.9 million fraud reports filed in 2020. The majority of those reports were identity theft complaints. The report further states that consumers lost more than $ 3.3 billion in financial assets.

Purchasing this policy will provide you and your business with coverage options that could prove Invaluable in the case of just this one skyrocketing form of crime.

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Necessary Information Needed

As a client looking to get a crime insurance policy, you will need to provide information so that your insurer can understand the risks your business faces. This includes:
  • Business organization size including the number of employees and business locations
  • Business revenue
  • Industries the business operates in
  • Accessibility of monetary funds and high-value items to employees
  • Company systems that are in place to prevent losses, such as audit and payment request procedures


Crime, unfortunately, is a part of our world that won’t be going away any time soon. But if you’re a business owner, you can mitigate any potential losses with a good crime insurance policy. If you don’t have one, you’d be wise to consider it.

Did you find this blog helpful? Let us know your thoughts in the comments below

Reach out to a local insurance agent today to find the right crime insurance coverage for your business.

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