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Crime Insurance

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The FBI consistently reports that a majority of cash, funds, valuables and property that go missing from workplaces are taken by employees. Now for the really bad news: Most business insurance policies focus upon outside crimes, such as burglary and robbery, as opposed to inside crimes, such as employee dishonesty.

For example, if your policy is a typical package such as a business owner’s policy (BOP), there will be an option to include coverage for employee dishonesty. If this option is not taken, there will be no coverage. Even if the option is taken, the limit for this insurance under most BOPs may still be minimal, and considering that many employee crimes go unnoticed for months or years, the amount could be insufficient.

Your first step, then, is to seek a crime policy that will help you recover losses suffered due to employee dishonesty. Second, purchase adequate limits, or consider higher limits if you already have some coverage. While at first glance, $25,000 or $100,000 may seem sufficient, numerous companies have diligently purchased this insurance only to discover that, for example, the embezzlement had carried on for some time. Many embezzlement cases have involved several employees and total losses exceeding a million dollars.

©2013 Selective Ins. Group, Inc. (Branchville, NJ). "Selective" insurers include Selective Ins. Co. of America, Selective Ins. Co. of New England, Selective Ins. Co. of N.Y., Selective Ins. Co. of South Carolina, Selective Ins. Co. of the Southeast, Selective Way Ins. Co., Selective Cas. Ins. Co, Selective Fire and Cas. Ins. Co and Selective Auto Ins. Co. of N.J. Insurers and products available vary by jurisdiction.