•

Commercial Crime Insurance

Commercial Crime Insurance protects businesses that manage or have access to client funds against financial losses resulting from fraud, theft, forgery, or other criminal acts committed by employees or third parties.

To apply...

Loading...

Commercial Crime App

Contact

Loading...

Rob Ferrini

Program Manager/Broker

Stephen Vono

Partner / Retail Manager

Fraud and Embezzlement in the workplace is on the rise

Workplace fraud and embezzlement are on the rise, posing a significant threat to businesses of all sizes. According to the Association of Certified Fraud Examiners (ACFE), businesses lose an estimated $400 billion annually due to fraud—about 6% of total annual revenue.

With this growing trend and the relatively low cost of protection, Commercial Crime Insurance is a highly recommended coverage for all businesses, especially if your firm provides bill paying or payroll services or has access to client funds. It provides crucial protection against theft, fraud, and embezzlement by employees, safeguarding your company from significant financial losses.

Small businesses are especially vulnerable, as they often lack the resources to implement extensive security measures and may not have the capacity to absorb the impact of such losses.

Additionally, it’s important to note that your Office Package policy (BOP) and other Employee Dishonesty policies may not cover theft involving client funds or theft committed by a third party (non-employee). Commercial Crime Insurance ensures that your business is fully protected in these scenarios.

We recommend this coverage for all our clients to help mitigate the financial risks associated with workplace crime.

Limits of Liability	1-10 Employees (full time)	11-25 Employees (full time)	26-40 Employees (full time)	41-60 Employees (full time)
$100,000/$500	$531	$721	$988	$1,222
$250,000/$1,000	$619	$832	$1,143	$1,414
$500,000/$2.500	$730	$980	$1,337	$1,653
$1,000,000/$5,000	$982	$1,317	$1,799	$2,199

Commercial Crime Insurance Coverage Details

Theft

Covers loss of or damage to Money, Securities or Other Property sustained by an Insured or client resulting directly from Theft or Forgery committed by an Employee.

ERISA Bond / ERISA FIDELITY Coverage

Coverage for loss of Money, Securities or Other Property sustained by such Employee Benefit Plan resulting directly from fraudulent or dishonest acts, including larceny, Theft, embezzlement, Forgery, misappropriation, wrongful abstraction, wrongful conversion, and willful misapplication, committed by a Fiduciary of any Employee Benefit Plan. This eliminates the need for a separate ERISA bond.

Forgery or Alteration Coverage

Provides coverage for loss directly caused by Forgery or alteration of a Financial Instrument.

Computer Fraud

Provides coverage for loss sustained by the Insured of Money, Securities and Other Property resulting directly from Computer Fraud committed by a Third Party

Funds Transfer Fraud

Provides coverage for loss of Money or Securities resulting directly from Funds Transfer Fraud committed by a Third Party.

False Pretenses Fraud

Provides coverage for loss of Money or Securities resulting directly from False Pretenses Fraud committed by a Third Party.

Credit, Debit or Charge Card Fraud

Provides coverage for loss resulting directly from Credit, Debit or Charge Card Fraud committed by a Third Party.

Professions we insure.

“McGowan Professional has been one of the easiest companies to work with. This year Fruci & Associates, PS acquired a subsidiary firm that performs PCAOB audits and attest services, which is work outside of the scope of our current accountants professional liability coverage.

Accountants & CPAs

Bookkeepers

Investment Advisors

Lawyers

Frequently asked about Commercial Crime Insurance

Why is Commercial Crime Insurance Important?

Fraud and embezzlement within the workplace are becoming more common. According to the Association of Certified Fraud Examiners (ACFE), businesses lose about 5% of their annual revenue due to fraud, which can be a devastating blow to any business, especially small companies that lack the resources to absorb such losses. Employee dishonesty, such as theft or fraud, is responsible for most of these financial losses.

Who is covered under a crime insurance policy?

A Commercial crime insurance policy covers theft by employees, as well as losses from burglary and destruction. Coverage typically includes current and former employees, partners, members, directors, volunteers, trustees, seasonal employees, and temporary workers under the employer’s direction and control. Independent contractors can be added when specifically requested.

What is false pretense or social engineering, and how can it affect my business?

False pretense, or social engineering, is a cybercrime where criminals impersonate trusted individuals to steal sensitive information or funds. With technology making it easier to deceive victims, this type of fraud is on the rise. Implementing security best practices and employee training can help reduce the risk of falling victim to these scams.

What is Commercial Crime Insurance?

Commercial Crime Insurance protects businesses from financial loss due to fraudulent activities, typically committed by employees, or other criminal acts such as theft, embezzlement, and fraud. This type of insurance is crucial for safeguarding your company’s assets, especially against dishonest actions that can lead to significant financial damage. This coverage is especially important for professional services firms that have access to client funds and provide bill-paying and payroll services for their clients.

Can an crime policy cover an ERISA bond?

Yes, Commercial Crime Policy are structured to be ERISA compliant, which eliminates the need for a separate ERISA bond. ERISA requires bonding of employee benefit plans equal to 10% of plan assets, up to a maximum of $500,000.