In today’s age of fast paced technological advancements, which at one end give a huge opportunity to business owners to grow at a rapid scale and conduct their operations more efficiently, at the other end their vulnerability to fraud involving computers is also increasing. Moreover, with changing business dynamics, the probability of employee dishonesty, theft and third party frauds is increasing too. Although having a robust internal control forms an integral part of any sound and professionally run business, human nature is still liable to introduce vulnerabilities & the dangers of rogue employees or third parties cannot be ruled out.
Traditional insurance policies may not have been designed to cover these new and evolving risks, which is why Crime Insurance policies are becoming more and more important to businesses. Crime Insurance is a policy that a business can buy to protect itself from business related crime including Employee Fidelity, Third Party fraud and Computer fraud.
WHO SHOULD BUY
Crime policies are important for many small businesses, but it is especially important for businesses that deal in cash, checks, online payment systems, and credit cards.
The policy covers the organisation identified as the Insured and its subsidiaries.
TYPICAL LOSSES
• Theft by employees or management, including direct theft of cash or business asset, making false claim expenses or payroll fraud
• Collusion between employee and third-party receiving bribes or commissions from a supplier for awarding of a contract, failure of an employee to disclose financial interest in a transaction
• Computer fraud such as diverting funds from bank accounts, stealing intellectual property, posing as a legitimate business on the internet and obtaining payment for goods or services
POLICY FEATURES/ EXTENSIONS
• Employee Fraud or Dishonesty
• Fraudulent Act of Third Parties
• Premises Coverage / Transit Coverage
• Damage to Safe / Damage to premises due to felonious entry or attempt thereat
• Depositors Forgery Coverage
• Computer Fraud Coverage
• Care, Custody and Control
• Fees, costs & expenses
• Use of investigative specialists
• Reconstitution Costs
• Money or securities – Damage, Destruction or Disappearance
• New Entities cover
• Violent or forcible theft of property by a third party
KEY EXCLUSIONS
• War
• Consequential Losses
• Directors/Partners/Major Shareholders
• Fines, penalties or damages
• Loss involving cost of reproducing any information contained in any lost or damaged manuscripts, records, accounts, microfilms, tapes or other records
• Loss sustained after knowledge
• Profit, loss or inventory computation
• Loss of trade secrets
• Fees or expenses in prosecuting or defending any legal proceedings
