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Crime Insurance
Help protect the money and property your business has earned against losses from theft and fraud.
- In short
- Crime insurance has separate provisions for different kinds of theft and fraud, often with separate limits.
- Who or what is protected
- Your money, securities, and property against covered criminal acts.
- Where it stops
- A payment staff were tricked into sending may need a social-engineering endorsement.
Theft and fraud are covered by different provisions
This guide helps you see how the method of a theft or fraud changes which provision responds.
Policy background and wording
Commercial crime insurance helps protect a business from financial loss caused by criminal acts such as employee theft, forgery, robbery, and certain types of fraud, including some forms of computer and funds-transfer fraud.
These exposures are often excluded or limited under standard property and liability policies, so crime insurance provides dedicated protection. Coverage can be structured around employee dishonesty, third-party crime, or both.
The method of theft matters
Employee theft, funds-transfer fraud, and voluntary transfers induced by deception may fall under different provisions. Social engineering can need an endorsement and sublimit.
Who typically looks at it
- Financial-services and advisory firms
- Retailers handling cash and inventory
- Professional firms managing client funds
- Nonprofits and membership organizations
- Wholesale and distribution operations
How it works
The method decides the provision
Four hypothetical losses map to employee theft, forgery or robbery, computer or funds-transfer fraud, and social engineering.
Read the diagram as text
- A bookkeeper diverts funds over months: Employee theft (Dishonesty by your people).
- A fraudster forges company checks: Forgery, robbery, burglary (Third-party crime).
- Cash taken in a break-in: Forgery, robbery, burglary (Third-party crime).
- A criminal enters systems and moves funds: Computer and funds-transfer fraud (Subject to terms).
- Staff tricked into sending a payment: Social-engineering endorsement (Voluntary transfers induced by deception).
Terms on this page
- Employee dishonesty
- Theft by employees of money, securities or property.
- Discovery
- Losses are recovered once discovered and documented.
- Fidelity
- A term clients may use when asking for crime coverage.
Look deeper
What if I cannot prove exactly what was taken?
Losses you cannot reasonably prove, and shrinkage without proof of theft, are commonly excluded.
What to check: Keep reconciliations and access logs.
Are owners covered if they steal?
Acts by owners or partners are commonly excluded.
What to check: Ask how the policy defines employee.
What if we knew about earlier dishonesty?
Losses after discovery of prior dishonesty may be excluded in some cases.
What to check: Disclose prior incidents.
Employee theft or third-party crime?
Coverage can be structured around one or both.
| Employee dishonesty | Third-party crime | |
|---|---|---|
| Who acts | Your employees | Outsiders |
| Examples | Embezzlement, theft of stock | Forgery, robbery, burglary, computer fraud |
| Common exclusion | Owners and partners | Voluntary transfers without the endorsement |
Scroll sideways to compare all columns.
What it may cover, and where it stops
Exact terms depend on the carrier, policy form, endorsements, and applicable law. Review the wording with your agent.
May cover
- Employee theft of money, securities, or property
- Forgery or alteration of checks and instruments
- Robbery and burglary of business funds
- Computer fraud and funds-transfer fraud, subject to terms
- Loss of money and securities on or off premises
Commonly excluded or limited
- Losses you cannot reasonably prove or document
- Ordinary trade losses and inventory shrinkage without proof of theft
- Acts by owners or partners, in many cases
- Indirect or consequential losses beyond covered amounts
- Losses arising after discovery of prior dishonesty, in some cases
Working through an example
Hypothetical and for illustration. Whether a real loss is covered depends on the facts and the policy.
- What happens
Employee embezzlement
A bookkeeper diverts company funds over several months.
- Which part is relevant
Employee theft is its own insuring agreement within crime coverage.
- What could change the outcome
- The loss must be discovered and documented.
- Owners and partners are commonly excluded.
- Limits apply per provision.
Other situations
Forged checks
A fraudster forges company checks. The forgery section may help respond to the resulting loss, subject to limits.
Funds-transfer fraud
A criminal tricks staff into transferring funds. Depending on the policy, computer or funds-transfer fraud coverage may help, subject to terms.
Before you talk to an agent
What underwriters usually weigh
- Number of employees and access to funds
- Internal controls and oversight practices
- Industry and amount of money handled
- Selected limits and deductibles
- Claims and loss history
Other questions owners ask
Is employee theft really a common risk?
Internal theft is a meaningful exposure for many businesses, particularly where employees have access to cash, inventory, or financial systems.
How is crime insurance different from cyber insurance?
Crime insurance focuses on theft and fraud losses, while cyber insurance focuses on data breaches and cyber incidents. Some fraud exposures may overlap, so coordination matters.
Does it cover losses caused by owners?
Acts by owners or partners are commonly excluded. Coverage typically focuses on employee dishonesty and third-party crime.
Can clients require crime coverage?
Yes. Clients who entrust funds or property to a business sometimes require crime or fidelity coverage as a condition of doing business.
Why The Southern Agency
Independent & Unbiased
We will work hard for you to make sure that you get great coverage by comparing multiple carriers.
Purpose-Built Solutions
Every business has different needs—we help you build your policy to match your industry and risk exposure.
Competitive Rates
We represent 40+ carriers—providing you with many coverage options to fit your budget.
Dedicated Support
Our team is here to support you with service after the sale—quick response, excellent claims handling, and friendly assistance.
Talk through crime insurance with an agent
We compare carriers, explain the wording, and help you choose limits that fit how your business actually runs.