Commercial Crime Insurance
Crime in the United States, and indeed around the world, is perhaps the number one cause of lost revenue in the business world. Commercial crime insurance is designed to protect your business’ assets against certain types of criminal activity so that you are not financially devastated by those criminal acts. Not only does this type of insurance guard against dishonest employees, it also covers criminal activity committed by those on the outside.
Typical Commercial Crime Insurance Coverages
While most people think that businesses experience more loss due to burglary and/or robbery committed by the public, the fact remains that most loss is incurred from dishonest employees. More revenue is lost each and every year from the intentional acts of employees than by all other forms of theft, fraud and burglary put together. Therefore, employee dishonesty heads the list. Other typical coverages include theft of money and/or securities, forgery, computer fraud and burglary/robbery. In this day of the computer superhighway, computer theft is quickly advancing up the list of the most common causes of commercial lost revenue. Some insurance companies even go a step further and insure cash in the register that is lost due to a natural disaster or even a fire!
Commercial Crime Insurance and Loss Prevention
When looking for commercial crime insurance it is important to choose a company that will help you develop a loss prevention strategy. Not only will you learn how to avoid many types of loss due to crime, but these strategies also help you in other areas of your business where loss occurs not directly related to crime. A good commercial crime insurance company will help you learn to prepare for disasters, educate employees with loss control resources and even help you learn to provide safety training to prevent loss due to injuries and claims against workers comp. Although not directly related to crime, you want to know that your insurance company has your financial stability at heart and will guide you every step along the way toward loss prevention.
Cost of Commercial Crime Insurance
Of course every policy will be different based on the amount of coverage being underwritten. Premiums will largely be based on the amount of coverage as well as in the amount of deductible you choose. As a result, a small Mom and Pop grocery store will not have nearly the amount of coverage that a mega conglomerate will have so their premiums will be understandably lower. Also, many insurance companies provide ‘bundle discounts’ for carrying more than one type of insurance with their company. For example, if you carry commercial auto insurance, commercial liability, commercial property damage and commercial crime insurance from the same company, each of those polices may see a reduction in premiums as a result.
While we would like to think the best of our fellow men/women, it isn’t realistic to think that criminal activity will not affect your place of business. By carrying commercial crime insurance you can safeguard your financial assets so that when you do realize lost revenue due to a covered loss, you will not be put out of business as a result. Compare quotes between several insurance companies to find a policy that has the coverage and services you need at a price that is affordable to your business. One thing to keep in mind is that this type of insurance can be a tax write-off at the end of the year. Even so, can you afford to take a loss due to theft, forgery, fraud or robbery? Probably not.