Fidelity Crime Insurance Explained

Fidelity/Crime Insurance protects organizations from loss of money, securities, or inventory resulting from crime. Common Fidelity/Crime insurance claims allege employee dishonesty, embezzlement, forgery, robbery, safe burglary, computer fraud, wire transfer fraud, counterfeiting, and other criminal acts.

These schemes involve every possible angle, taking advantage of any potential weakness in your company’s financial controls. From fictitious employees, dummy accounts payable, non-existent suppliers to outright theft of money, securities and property. Fraud and embezzlement in the workplace is on the rise, occurring in even the best work environments.

Any business employer needs to be concerned with Employee Dishonesty or any business handing cash or securities needs protection from robbery or theft will need Fidelity/Crime Insurance.

Because crime-related losses are not typically covered by most property insurance policies, crime protection insurance is a necessary component for any business. Unfortunately, the majority of businesses don't purchase enough crime protection.

If yours is like the average U.S. business, you can expect to lose 6 percent of your total annual revenues to employee fraud.

According to a recent study by the Association of Certified Fraud Examiners (ACFE). It estimates the average business is losing six percent of its total annual revenue from losses involving employees — on average more than $9 per day per employee.

Fraud and embezzlement in the workplace is on the rise, occurring in even the best work environments.

These frauds can go on for years, and when discovered the ultimate impact can be enormous. Smaller companies are especially vulnerable to Fidelity crimes.

Most business insurance policies either exclude or provide only nominal amounts of coverage for loss of money and securities as well as employee dishonesty exposures.

The American Management Association has estimated that employee dishonesty causes as much as 20% of the nation's business failures.

White collar crime can have serious financial consequences, even threatening a private company’s survival.

To put it bluntly: it is the loyal, long term, conscientious and trusted employee whose dishonesty can put you out of business. The programmer who never takes a vacation and is never sick. The long term employee who is “just like family.” Let's face it. Only employees like this really have the opportunity steal over a long period of time. Only employees like these can take enough to jeopardize the financial survival of your firm.