What is crime Insurance?
Crime insurance is a broad term used to describe a selection of individual coverage relating to the taking of money, securities,and property from a business or organization. It is sometimes divided up between losses that take place inside the business premises and loss that occur outside the premise. Crime Insurance can include employee dishonesty, forgery, theft and robbery burglary or fraud.
Why do I need it?
Unfortunately, in this day and age, crime continues to rise as more and more businesses use the internet. There are all different types of crime and each has it’s place in a business property policy. Many owners assume that Crime Insurance is including it the Small business package they purchased, however most of the time it is not. It is imperative that you discuss your business insurance with an agent to make sure you are protected. There are a few different types.
Fraud and Embezzlement
Due to economical conditions, fraud is at the top of the list. Sometimes it is not noticed for years. Fraud has always been around, but not to the extent it is now is now. Use of the internet has brought out the worst in people, as it is very hard to track a source down. The sad part is that it could be someone in your office, who you have trusted with confidential information only to find out that funds have gone missing. They have targeted you and once they know the routines of the office, they will swipe the money from right under your nose. This could be devastating considering you have private information of your clients, which they probably have taken as well. Check forgery, dummy accounts that have had no red flags of any problems.
Is the unlawful taking of money, by using force or violence or the threat of force or violence. Robbery coverage is only applicable if you are open and present at the time.
Employee Dishonesty Crimes
When property or money has disappeared due to the criminal act of an employee, a regular crime coverage will not respond to the loss. Most crime policies are set up to protect you from outside crime. You must purchase an Employee Dishonesty policy for any type of internal type of crime.
Best ways to protect yourself against Employee Dishonesty?
It is absolutely impossible to look over the shoulder of all your employees each day. Here are a few suggestions that may help.
Only give authorization to any banking or accounting personnel who you trust and need the access. A small department looking after all the accounts with high access to a manager, a bit less for an assistant and virtually no access for a data entry clerk. The procedures in place for accounting, payroll, customer payments should be safe if there is a solid procedure in place.
There should only be one person besides you that has check signing authority.
There are specialty software packages available that can be used outside the program all your employees use every day.
Only give the keys to the people who need them.
Security Cameras at all entrances
Always change locks on your business when a key holder leaves the business.
Coverage to a building caused by a Burglary
If you are renting a building for your business, and there is damage due to a burglary, break-in , it is possible that you will be responsible to pay for any damage caused to the property or building.
If you are the owner, you may need to have a comprehensive policy to cover the damage. A basic fire policy would not cover damage to the building.