A 2022 survey revealed that nearly 60 percent of fraud happens with help from an employee. Worse still, employee crime results in a loss of $357,650 on average annually. Also, about 22 percent of small businesses have suffered losses due to employee crime. Since it’s difficult to fully eliminate crimes perpetuated by employees, you should prepare yourself for such incidents. One way to do that is to carry adequate commercial crime insurance. Here’s detailed information on this topic.
What Is Commercial Crime Insurance?
This insurance policy shields your business from financial losses caused by an employee’s criminal activities, such as fraud, theft, and robbery. Whether the crime is related to your commercial property, finances, or data, crime insurance will pay for the related losses. This way, you won’t have to suffer a double loss by using your savings to replace the loss or file a lawsuit against the culprit.
What Does Commercial Crime Insurance Cover?
As mentioned above, commercial crime insurance typically covers the financial losses that emanate in case an employee commits a crime against your business. For instance, if your employee colludes with cybercriminals to steal valuable information from your company, crime insurance will pay for the resulting financial losses. Specifically, this policy covers defense, embezzlement, kidnapping, legal liability, bodily injuries, theft, and property damage, among others.
It’s worth noting that commercial crime insurance only covers crimes that your employees commit against the company. Typical exclusions from this policy include crimes committed by business partners. In case your employees collude with your business partners and steal from your business, commercial crime insurance will not pay for the financial losses that result.
Why Do You Need Crime Insurance?
Employee crime has become rampant in the U.S. and across the world. To give you an idea, employees steal about 20 percent of every dollar made in their respective companies. Such a loss is big enough to take any small business out of operation. It is worth noting that commercial crime insurance is essential. This coverage protects your business finances from the inevitable employee crime. In case of a crime, this policy will recover the lost finances, file a lawsuit and related legal costs, and replace the lost or damaged properties.
Provided you have employees in your business, you risk losing money to employee crime. It is always possible to train your employees, create awareness concerning crime, state the consequences of crime, and even be at the forefront of preventing crime. However, this does not guarantee that all will be well in your company. Keeping this in mind, stay ahead with the right commercial crime insurance coverage.
Get the Right Commercial Crime Insurance Policy at 01 Insurance
Employee crime is among the most overlooked perils, which cause huge losses in a business. Hence, you must shield your business finances with the right commercial crime insurance. Contact the agents of 01 Insurance today to find out how we can protect your corporate finances. We have many recommendations that have been proven effective and can help you keep your company’s financial future secure.