Understanding Crime and Fidelity Insurance

Understanding Crime and Fidelity Insurance

Fidelity crime insurance coverage offers financial compensation for the loss of cash or goods through forgery, theft, fraud or other crimes committed by company employees. Employee theft is becoming more common, particularly in smaller organizations where fewer controls exist. However, every business, regardless of size, is a potential target for employee crimes, and fidelity insurance is a risk management approach to alleviate the devastating impact of an uninsured theft loss.

The Need for Protection

Even though most businesses try to hire honest employees, over 60 percent of employees who commit a crime at work have been employed for over five years, and more than three years pass before fraud detection occurs. Also, one in three businesses reports having been victims of employee theft. In addition to employee theft and computer fraud, crime and fidelity insurance also protects against:

  • Alteration or forgery
  • Funds transfer fraud
  • Robberies inside and outside the premises

Fidelity crime insurance protects your business from losses sustained as a result of offenses committed by employees.

Steps to Mitigate Employee Crime Losses

You can mitigate risks of exposure to crime losses by requesting an insurance audit that thoroughly reviews your policies and endorsements. Meet with a trusted insurance agent who can tailor fidelity crime insurance coverage to meet your needs and budget.

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