Commercial Crime Insurance

> The Benefits of Commercial Crime Insurance
> Quick Guide to Commercial Crime Insurance
> Frequently Asked Questions
> Insuropedia
> Why SecureNow?

The Benefits of Commercial Crime Insurance

Employee Fidelity Cover

Commercial Crime insurance protects the business against the claims arising due to employee fidelity or dishonesty. For instance, the company will be covered if any of its employees steals cash from the office.

Blanket Policy

Commercial Crime policy offers coverage for all full-time and part-time employees. It also covers contractual workers and volunteers who may be vulnerable to fraud, dishonesty or theft.

Transit Cover

Losses sustained due to destruction, theft or wrongful abstraction of money and securities outside your business premises by a third party are covered by Commercial Crime Liability insurance.

Affordable Cost

Commercial Crime insurance provides coverage for a wide range of business risks at a very cost-effective price. There is also an option to include extensions to your policy to enhance your coverage.

Quick Guide to Commercial Crime Insurance

Definition of Commercial Crime Insurance Policy

Commercial crime insurance, also known as Business Crime Insurance, is a liability insurance policy designed to protect your business through a lot of business-related crimes such as fraud, forgery, theft, burglary, etc. both by the staff or any external miscreant. The protection under a commercial crime insurance policy can cover for cash, assets, merchandise or other property loss occurring under a business-crime on the company.

Beneficiaries of Commercial Crime Insurance

A commercial crime insurance is a simple insurance that covers for a larger risk of theft and manipulation for your business.

Below is a list of businesses for which commercial crime insurance is most relevant:

A. Businesses exposed to the risk of physical theft

Organizations that have a lot of gig-workforce
Businesses that have a lot of cash transactions
Companies managing inventories
Organizations that are asset-heavy; have large and expensive equipment in the office premises

B. Businesses exposed to risk of digital theft and manipulation

Organizations dealing with customer data and other sensitive client information
Businesses making online transactions
Businesses dealing with sensitive financial records

Benefits of Commercial Crime Insurance Policy

Wide risk coverage: commercial crime insurance provides a wide range of coverage by protecting your business from employee dishonesty, fraud, theft, burglary, cyber fraud, robbery, forgery and losses due to these activities. Along with this, crime insurance policies cover financial losses to business due to third-party fraud and the policy will also pay for the loss of money and securities in transit outside the insured's premises.
Additional Extensions:Commercial Crime insurance comes with many add-ons like computer fraud cover, in-transit cash and valuables cover, and coverage for client's expectation damages, which can be included by paying an extra premium. The policy can also be extended to cover any financial loss due to cybercriminal activities committed by an employee. Coverage of additional items such as expense for additional workforce, transportation of documents, rent of temporary premises and offices can be introduced.
Cover for legal costs:A commercial crime Liability policy indemnifies you from all investigation costs and other legal costs incurred due to loss from an employee or third party, hence protecting your business financially. An expense incurred due to computer violation is also taken care of by the policy. Crime losses not only cost you money but also precious time, and this policy saves both to help you focus your resources on growing your business.

Types of Commercial Crime Insurance Policy

Commercial crime insurance policy can be customized depending upon the need of the organization. While the basic construct remains the same, the ad-ons and extensions can be tailor-made.

Coverage of Commercial Crime Insurance Policy

Commercial crime insurance policy comes with a variety of coverage against fraud and con-artists. Below is a list:

Employee theft Cover: It includes loss of securities, money or other property by theft or forgery by the employee of the company.
Premise Cover: It includes losses from destruction, wrongful abstraction, theft of securities or money from the policyholder’s premises by third-parties.
Transit Cover:It comprises losses from disappearance, destruction of money or security outside the policyholder’s premise by a third-party.
Depositors Forgery Coverage: It includes losses or damages which arise due to losses from instruments like cheques which are fraudulently drawn by a third-party on account of the policyholder.
Computer Fraud Coverage:It comprises losses which a policyholder has to endure due to computer fraud made by a third-party along with the expenses which the policyholder has to incur due to a violation of the computer.

Note: This is not an exhaustive list. Details of all the inclusions will be part of the policy copy.

Exclusions under Commercial Crime Insurance Policy

Below is the list of exclusions under a commercial crime policy:

Losses due to war, strike, riots and terrorism
Consequential losses
Credit risks, extortion, ransom, fines and penalties
Loss due to fire, willful or deliberate acts resulting in claim,
Violent crime by any employee or organization itself
Fraud by the insured's partner
Third-party liabilities arising from crime-related losses
Cybercrime-related losses such as lost patents, trade secrets, customer lists

Note:This is not an exhaustive list. Details of all the exclusions will be part of the policy copy.

Cost of a Commercial Crime Insurance

Cost of commercial crime insurance depends on the type of business risks to be covered and the crime coverage amount. Some of the common risk metrics are:

Number of employees in the organization
Revenue generated by the business
Industry
Location

Established security and control systems of the organization

Financial controls
High-value assets

Best Commercial Crime Insurance Policy Online in India

Commercial crime insurance policy is a very personalized insurance that is designed based on your requirement depending on the nature of the business and the risks involved. SecureNow understands your needs and that is the reason we have tie-ups with insurance providers that can provide the best crime insurance with maximum coverage against fraudulent activities that can tarnish your business’ reputation and financial conditions.

Documents Required for Commercial Crime Insurance Policy

Below is a list of documents that have to be provided while filing a claim for crime insurance coverage:

A duly filed claim form; and below documents as required for investigation
Police investigation report
Internal investigation report
CCTV footage showing the corresponding incident
Letter of employment or termination
Records supporting the amount claimed as per the requirement of the insurance company
Other additional documents as required

Claim Procedure for Commercial Crime Insurance Policy

Filing a claim procedure for commercial crime insurance is now easy. You have to fill a duly filled and signed claim form available with your insurer. Then with required supporting documents, as mentioned in the question above, apply for the claim within your sum assured.

Frequently Asked Questions

Commercial crime insurance is meant to provide comprehensive protection to businesses against theft, robbery, burglary, and any damage to the company's property. Computer fraud done to steal funds and securities is also covered by the policy. All the legal and material implications of fraudulent activities by the employees, part-time employees or contract workers come in the purview of commercial crime insurance.

Commercial Crime Insurance is also popularly known as Business Crime Insurance Policy, for reference, by many insurance providers and buyers.

Forgery cover implies that the policy will protect you in case your employee or a third party imitates any person's or authority's signature, or misuses a document or any other data in order to perform fraud or with the intent to steal. For instance, loss to the business due to cheques fraudulently drawn from your company's account can be covered under the commercial crime policy.

Under the insured's legal liability coverage of Commercial Crime insurance, insurance will pay for all the financial losses resulting due to the claim made by the client for legal liability which may directly be resulted from criminal activities performed internally or externally which came across during the discovery period. This coverage is subject to some sublimit which is mentioned in the policy.

Commercial Crime insurance provides comprehensive protection to businesses against theft, damage to the company's property, robbery, burglary within office premises, and fraudulent activities by the employees, part-time employees or contract workers. Computer fraud done to steal funds and securities is also covered by the policy.

Losses due to war, strike, riots and terrorism are not covered under the policy. Consequential losses, credit risks, extortion, ransom, fines and penalties are also excluded from the policy. Some general exclusions in the policy include loss due to fire, willful or deliberate acts resulting in a claim, violent crime by any employee or organization itself and fraud by the insured's partner.

The two major sections of a commercial crime insurance policy are:

Internal Fraud:internal fraud pertains to employees – full-time, part-time or volunteers. Ex-employees, who have been terminated for a period not exceeding 60 days, also come in the purview of internal fraud. This excludes: any partner of the insured, any external auditor, broker, factor, commission merchant, consignee, contractor, other agent, representative, or equivalent.

External Fraud: external fraud means any fraudulent or dishonest single, continuous or repeated act(s) or a series of acts committed by a Third Party. This excludes: corporate transactions, voluntary exchange or investment activities.

While calculating the premium for Commercial Crime insurance, various factors are considered such as nature of the business, size of the organization, number of employees, location of business and so on. Security measures adopted by the enterprise to secure its financial activities, including steps taken for cyber-security, are also considered while calculating the cost of the policy.

In most policies fraudulent activities related to IT are not covered. But you can cover such situations by paying a marginally extra premium. Also, reconstitution expenses resulting from computer-related criminal acts can be covered by the policy. These extensions usually come with some sublimits.

The premium for such a liability insurance policy is not directly proportional to the sum assured. Premium increase for incremental sum assured is generally marginal.

Only a few insurance providers in India offer a commercial crime insurance policy that is comprehensive in nature. Here are a few insurers that deal with commercial crime insurance with a variety of coverage: HDFC Ergo, ICICI, TATA AIG, Bajaj.

Commercial crime insurance policy is a very personalized insurance and the coverages have to be weighed against the nature of the business, the risks involved and the location of the business, to be able to provide you with the best crime insurance. Hence, we request you to share your basic details like your name and contact details and a commercial crime expert will get in touch with you within 24 hours.

Commercial crime insurance claims require a detailed review of the incident and supporting documents to determine the admissibility. For the ease of access for our clients, SecureNow has a centralized email address(support@securenow.in) and phone number (+91 96966 83999) that works 24X7 for your queries and concerns regarding anything. Please write to us and we’ll get back with the details of all the necessary documents that you have to share regarding your claim for a commercial crime insurance

We have made buying Commercial Crime insurance easy and hassle-free. You just need to fill the above form and provide basic details about your business to us. We then float your proposal to different insurance companies and negotiate quotes with them so that you can get the best deal at an affordable price. Once you finalize the option, you need to fill out the proposal form and make the payment via cheque or NEFT to get the policy started.

Yes, past claims do impact the premium of Commercial Crime policy. The size of past claims and their frequency is taken into consideration while calculating premium, and has a direct impact on the premium. If the past claims size is high, the premium of the policy will also increase. However, if the claim is not substantial, premium rates may remain unchanged.

Duly filled proposal form

Annual report

Consolidated audited financials

In case of loss of securities, the actual value of securities including interest, coupon and dividend or any cash and valuables at the closing market on the last business day is considered. If there is no market price of the relevant securities, then the value is on the basis of agreed terms. In case of property other than cash equivalent, the actual value of the property will be paid.

Yes, commercial crime insurance will reimburse the fees and costs of consultants according to the insuring clause. If partial loss is covered under the policy, the fees of the consultant are proportionally shared by the insurer and insured. Costs of investigation and expenses incurred in making recovery are also paid by the insurance company.

While filing a claim you should make sure that you fill accurate information in the claim form and provide all the required documents to the insurer. Avoid committing any willful or fraudulent activity which may result in a claim, otherwise your policy will become void. If you are renewing the policy, then you should make sure that the retroactive date is maintained by ensuring timely renewal.

Insuropedia

What is the Importance of a Commercial Crime Insurance Policy?

A Commercial Crime insurance plays an important role in the smooth functioning of business by covering its various assets against a series of acts of dishonesty, theft or fraud of the employee and third-parties. No matter how trustworthy your employees are (or seem to be), it’s more the senior staff and your most reliable workers who are involved in fraudulent activities...

What Is the Application Of Commercial Crime Insurance?

Commercial Crime insurance policy covers losses to a business organization due to criminal activities. These activities include employee dishonesty, theft, embezzlement, fraudulent fund transfers, computer fraud, and forgery. An insured can protect his business with the help of a Commercial Crime insurance policy through the following ways...

What are the additional costs under Commercial Crime insurance?

A Commercial Crime insurance policy provides different kinds of protections against Commercial Crimes like employee dishonesty, forgery or alteration coverage, computer fraud, funds transfer fraud coverage etc. This policy protects a business owner or an employer against any such dishonest acts.

In the event of any such Commercial Crime...

Why SecureNow?

Deep Product Knowledge

We have specialized underwriters and tie-ups with international experts.

Cost-effective Insurance

We work with all insurers to get you the best options- both in terms of price and features.

Quick Turnaround

Cover notes are issued within hours of request. This documentation is sufficient for any contractual requirement.

Strong Claims Support

We manage all aspects of your claim - from preparing documentation to follow-up with the insurer.

Value-Added Services

We will advice you on risk management best practices.

Policy Administration System (PAM)

See all your contracts renewal information in one place. Place service requests on PAM.

Table of Contents