5 Types of Crime Insurance Policies Businesses Should Consider: There’s a chance that some of the people who work for you might be taking things that don’t belong to them from where you work. You might think that stealing only happens at other companies, but actually lots of people steal from their own workplaces.
Even though we want to believe that everyone is honest, the facts show that most businesses have had things stolen from them. In fact, almost all businesses have had something stolen! And sometimes, it takes a long time before anyone realizes that something has been stolen. How can you make sure your business is safe when something bad is likely to happen? Crime insurance helps keep a company’s important stuff safe from bad guys.
It’s like a special type of insurance that makes sure the company’s money and things are protected. This guide will help you understand the five different ways to protect your business from bad things that might happen, like people doing bad things to your business. If you have crime insurance, it will only cover certain things that happen. It’s like a list of things it can help with, and if something else happens that’s not on the list, it won’t be able to help.
Most commercial insurance policies cover almost everything unless there is a specific reason not to, but this policy only covers certain things. It’s really important to think about the things that could cost us the most money or happen the most often, and make sure our insurance policy will cover those things the way we want it to.
Also Read: How Insurance Companies Make Money
Table of Contents
1. Employee Dishonesty
This is when a person who works for a company takes things that don’t belong to them or does bad things that cost the company money. It’s called “employee theft” and it can include money, things that are worth money, or other important things. The rules for who is considered an “employee” can be tricky, so it’s important to make sure everyone who works for the company is included.
If you work for a company and they help save money for your retirement or pay for your health care, there are rules to make sure they do it honestly. This is called ERISA. If someone at your company doesn’t follow these rules and takes money that isn’t theirs, there is something called a crime policy that can help fix it.
The Employee Retirement Income Security Act is a law that tells companies they have to make sure their workers’ retirement and health plans are good enough. This law makes sure that at least 10% of the plan’s money is protected. It’s really important to add the plan to your crime insurance policy to make sure it’s protected. If you already have crime insurance, you can usually add the plan without any problems. Plus, this type of insurance covers more than just theft.
2. Money and Securities
3. Money Orders and Counterfeit Money
This helps protect your business from losing money if you accidentally take fake money or checks. It’s easier for people to make fake money now, so this is important. The number of fake checks being reported has gone up a lot recently.
4. Forgery and Alteration
If someone pretends to be you and writes a check or a note saying they will give you money, but it’s not really from you, this coverage will help you. It can also help you if you get in trouble for not paying a fake check that someone else made.
5. Funds Transfer Fraud
This part of the insurance policy protects you if someone tricks your bank into taking money out of your account. For example, if someone pretends to be you and tells the bank to send money somewhere else, this insurance can help you get your money back. Someone sends a message pretending to be you or someone who works with you, but it’s not really from you.
They do this without your permission and it’s not okay. Sometimes people can pretend to be you or someone who works for you and change or make fake instructions without you knowing. It’s like someone pretending to be your teacher and giving your class a fake assignment.