Crime Insurance & Risk Management

This article is being written to address the most common claim that I see in the industry, crime. I will touch on some common coverages below. Further on, I will give you some helpful tips on how to prevent these claims from happening or at least mitigate them if they do.

" style="font-size:medium;text-decoration:underline">Types of Crime Coverage

Employee Dishonesty:

Coverage for employee theft of money, securities, or property, written with a per loss limit, a per employee limit or a per position limit. Employee dishonesty is one of the key coverages provided in a commercial crime policy. Ask your insurance broker for different forms offered by insurers.

Cash Inside the Premises:

This will cover a loss where a third party has stolen cash from inside your premises during or after hours.

Cash Outside Premises:

Covers a third party stealing your businesses cash outside the premises. Example; on the way to the bank to make a deposit.

Money Orders and Counterfeit Currency:

Covers loss due to the acceptance of a money order that was issued (or is purported to have been issued) by a post office or express company and loss due to acceptance of counterfeit paper currency of the United States or Canada.

Depositors Forgery:

Insurance that protects the insured against forged or altered financial instruments, for example checks or promissory notes, made in the insured's name or supposedly signed by the insured.

Generally most insurers give a $5k limit per occurrence, on a basic extension package, on a plus or deluxe extension package you may see $10k per occurrence. With specialty markets or high risk insurers your broker may have to specify a limit. Consult with your preferred insurance expert and plan for the worst case scenario.

Here are some tips on how to prevent or deter would be thieves:

• Have a monitored alarm system and have stickers announcing it on every entry
• Install pillars in the front of your store to stop criminals from driving through your business at night to rob it. This will also protect patrons from accidents
• Install shatter proof glass
• Have a hold up or panic button installed under your counter
• Do not keep cash in the register overnight
• Leave empty register drawer open overnight
• Install camera’s to deter thieves and employees from stealing
• Affix stickers on every door, proclaiming that your premises is protected by camera surveillance
• Keep minimum cash in your register at anytime. It helps prevent employee and robbery theft
• Have a drop safe bolted to the floor for excess cash
• Deposit cash at your bank yourself daily, it will help minimize employee fraud or theft
• If a robbery takes place, be sure to hand over your money to avoid injuries.

Losing a customer today due to the inconvenience of an insurance claim, doesn’t mean they will come back tomorrow. Prevention will help your business flourish and keep your insurance costs manageable.

Protect your business! Protect your money!

The above article was meant for educational purposes only. Wordings, coverage, and exclusions vary by Insurance Company and should be carefully reviewed with your Insurance Advisor.