Crime insurance

Crime insurance is insurance to manage the loss exposures resulting from criminal acts such as robbery, burglary and other forms of theft. It is also called "fidelity insurance". Many businesses purchase crime insurance that allows them to file claims for employee theft or other offenses with the potential to cause financial ruin.

Because crime insurance loss exposures can vary significantly among policyholders and require special underwriting skills, insurers prefer to insure certain types of crime insurance loss under separate Commercial Crime Insurance forms. These forms allow organizations to cover crime losses that are not insured under other insurance policies.

Briefly described, commercial crime insurance covers money, securities and other property against a variety of criminal acts, such as employee theft, robbery, forgery, extortion and computer fraud. Many insurers use Insurance Service Office's (ISO's) commercial crime forms.

The ISO Commercial Crime Coverage form includes these eight insuring agreements:

  1. Employee Theft
  2. Forgery or Alteration
  3. Inside the Premises - theft of money and securities
  4. Inside the Premises - robbery or Safe burglary of other property
  5. Outside the Premises
  6. Computer Fraud
  7. Funds Transfer Fraud
  8. Money Orders and Counterfeit money

Some organizations buy crime insurance instead of a surety bond.

Anarcho-capitalists favor the use of crime insurance by individuals as well, to cover losses due to murder, rape, and other violent crimes in addition to property crimes; this type of crime insurance is termed aggression insurance.

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