Crime insurance protects against the direct financial loss suffered by companies arising from employee fraud and the dishonest acts of third parties. Purchasing crime coverage should form part of a comprehensive risk management strategy that helps to offset the financial burden from such losses.
Why you should consider buying this insurance
Any entity using financial transactions and trading with the outside world is at risk of fraud. Losses can arise from a variety of sources, such as:
- Social engineering
- Expense schemes
- Theft of stock and physical assets
- Procurement fraud
- Payroll fraud
- Cheque / funds transfer tampering
When a loss is discovered the costs and consequences can be catastrophic so it is important to have robust insurance including cover for forensic investigations in order to minimise its effects on the business. Crime insurance is an efficient way to protect your company's assets from crime and can form an essential part of the insurance portfolio helping to protect shareholders' money.