The category of commercial crime encompasses many things. Fraud, bribery and corruption are just a few of the more common threats, though outright theft is equally common. Any of these activities steal capital from a company, leaving a damaged reputation and the need to recoup expenses it the wake of the event. Unfortunately, commercial crime isn’t completely avoidable and costs U.C. companies around $100 billion a year. Here are some fast facts about commercial crime.
Commercial crime insurance isn’t a part of commercial property policies. A standard commercial liability or property policy rarely included insider theft and coverage for securities, monies or other properties.
Commercial crime is most often committed by employees. They have the insider information to passwords, they already have company trust and they know where the cash is kept.
Not all commercial crimes are included with crime insurance. Crimes must be a legal violation that can be held accountable to government rules. Partners stealing from the business or vandalism aren’t usually covered situations.
Cyber attacks or occurrences aren’t always covered by crime insurance, though electronic funds transfers or online fraud occurrences may be inclusions. Data breaches are covered through a cyber crime policy.
A company’s financial health and security must be safeguarded from both internal and external threats. Crime insurance is one way to set up internal protections.