What Is Crime Insurance and What You Need to Know (Video)

Could Your Business Survive a $150,000 Loss?

Imagine it’s a regular Monday morning. You’re sipping your coffee, sorting emails—then the phone rings. It’s your company controller, and they’ve just discovered $150,000 missing from the business account. After some investigation, the source becomes clear: employee theft. And, you ask yourself: What is Crime Insurance?

A loss of this magnitude can be devastating, but to be fully protected, you must understand what is crime insurance and what it covers. Sound extreme? Unfortunately, this isn’t a rare scenario.

According to the Association of Certified Fraud Examiners:

• 95% of businesses experience some form of employee theft.
• 5% of annual revenue is lost to fraud.
• The FBI reports employee theft costs U.S. businesses over $50 billion every year.

These aren’t just stats—they’re warnings. If your business isn’t properly insured against crime, a single incident could be financially devastating.

What Is Crime Insurance?

Crime insurance protects your business from losses resulting from theft, fraud, and dishonest acts committed by employees, vendors, or outside individuals. It fills the gaps left by standard commercial policies and helps ensure you’re not left footing the bill when fraud hits. When considering what crime insurance is, it’s crucial to remember its role in covering financial risks.

While some small businesses have limited crime coverage bundled into a Business Owner’s Policy (BOP), these limits—often $10,000 to $25,000—are rarely sufficient. That’s why many companies opt for a standalone crime insurance policy tailored to their unique risks.

3 Essential Crime Insurance Coverages to Consider

Let’s look at the key areas crime insurance should cover.

1. Employee Dishonesty

This is one of the most common and damaging forms of business crime. Employees can siphon off funds slowly over time, making detection difficult.

Examples include:

• Payroll fraud: Inflated hours or fake employees.
• Expense reimbursement fraud: Submitting bogus receipts.
• Credit card abuse: Charging personal expenses to company cards.
• Asset misappropriation: Stealing inventory or equipment.

These schemes often run for years before they’re uncovered, resulting in losses far exceeding typical policy limits. That’s why having the right coverage limits is critical for what crime insurance includes.

2. Forgery and Alteration

Forgery and altered payment instructions are becoming increasingly sophisticated.

Common scenarios:

• Fraudsters intercept a company check, change the payee, and deposit it.
• Criminals use check-washing techniques to erase ink and rewrite fraudulent details.

Even with protective measures like wire transfers and approval systems, some losses still slip through. Forgery and alteration coverage ensures your business is financially protected in the event of such occurrences. Knowing what crime insurance entails can help secure your operations.

3. Computer Fraud

As cyber threats evolve, so must your coverage. Computer fraud includes unauthorized electronic fund transfers and fraudulent instructions sent via email or other digital channels.

While cyber insurance might offer limited protection (often capped at $250,000), it may not fully address this risk. A standalone crime policy can provide broader, more robust coverage, which is crucial when considering what crime insurance protects against.

How We Help You Get the Right Crime Insurance

At The Coyle Group, we make insurance straightforward and tailored to your needs. Here’s our simple, no-pressure process:

1. Review your current policies and assess your risk exposure.
2. Identify gaps in your existing coverage.
3. Design a custom policy that protects your business from crime-related losses such as those covered by crime insurance.

With over 40 years of experience and a friendly, expert approach, we’re here to help you navigate the complex world of business insurance with confidence.

Don’t Leave Your Business Exposed

Employee theft and fraud aren’t just possibilities—they’re probabilities. Without adequate crime insurance, you’re one incident away from serious financial trouble.

Understanding what crime insurance entails, with the right protection, you can:

• Safeguard your assets
• Avoid major out-of-pocket losses
• Focus on growing your business, not recovering from setbacks

Ready to Protect Your Business?

Let’s ensure your business is fully protected.
📞 Contact me today to schedule a free consultation. Click the “Get Insured Now” button at the top of this page to get started.

No pressure—just smart advice and tailored solutions from someone who’s been in the business for over four decades.