Get Up to Speed on Commercial Crime Coverage
One way to distinguish yourself from your competition is with your knowledge of commercial crime coverage. Most of your clients need crime insurance of some kind. Here are a few points to keep in mind.
- Nearly all organizations need crime insurance to cover employee theft losses since property policies universally exclude employee dishonesty as a cause of loss.
- Many organizations also need coverage for the transfer of property (especially money and securities) on the basis of fraudulent instructions or fraudulent alteration of the insured's computer system. Property policies generally exclude loss due to the transfer of property on the basis of unauthorized instructions, and money and securities do not qualify as covered property under a property policy.
- Any organization that handles a significant amount of money or securities needs crime insurance since money and securities do not qualify as covered property under a property policy.
- Any organization purchasing named perils property coverage, whose personal property is susceptible to theft, needs crime coverage even if little or no money is exposed to loss since named perils property policies do not cover theft as a cause of loss.
How IRMI Can Help
Crime insurance that is designed to meet the needs of organizations other than banks and other financial institutions is written on what is typically referred to as commercial crime coverage forms. IRMI's Commercial Property Insurance explains all the key commercial crime coverages that are available to organizations other than financial institutions.
- Employee dishonesty/theft coverage
- Forgery or alteration coverage
- Money and securities coverage
- Money orders and counterfeit money coverage
- Coverage on property other than money and securities
- Computer and funds transfer fraud coverage
- Fraudulent impersonation coverage
- Kidnap, ransom, or extortion coverage
The differences in the 14 coverage and policy forms in the Insurance Services Office, Inc., commercial crime program are pointed out, and discussions of each of the 100-plus endorsements used with this program are provided within IRMI's subscription resources.
Leverage IRMI's commercial property resources to make yourself a trusted adviser in this area for your clients or your organization.
