According to research published by Gallup, 15% of Americans report that they have been a victim of a crime. These crimes are more likely to involve property violations than assault or violence. However, the fact remains that millions of Americans have been affected firsthand by crime. Business owners may wonder whether their insurance covers damages that result from criminal activity. Sometimes, the answer is no. However, specialized coverage is available. It can bridge the gap between your clients’ coverage and the protection they seek. What is crime insurance, and do you need crime insurance if your business is at risk? Find out what crime insurance covers.
Employee Theft
Employees penetrate a large portion of a business’s financial loss.
This type of theft can be challenging to prove and even more difficult to recover from. However, crime insurance commonly covers these businesses and their losses. A crime insurance policy covers the cost of lost assets, including those lost due to employee theft. It is essential because commercial property insurance may cover theft perpetrated by outside parties. However, it typically will not include losses from an employee’s criminal activity.
Theft from Property
Even if your existing insurance policy covers theft, complementing your coverage can provide better protection. Crime insurance may offer higher coverage limits to minimize the damage sustained due to a theft incident. It is a significant asset, considering the potential cost of such an incident. Also, it is essential to note that shoplifters often don’t act alone. A business’ own staff may support theft that appears to be perpetrated by a third party. In these cases, crime insurance is essential protection against loss.
Third-Party Fraud
Checks may seem like an ancient form of payment, but many businesses still accept them. Then, they fall victim to fraud. Customers can use forged checks to evade payment, but there are many other ways to conduct third-party fraud. Some customers may be savvy enough to clone credit cards and pay with funds that aren’t theirs. Others may fraudulently initiate a chargeback claim after a purchase to get a refund.
Social Engineering
Perhaps the most dangerous form of fraud threatening businesses is that of social engineering. This type of impersonation entails diverting funds from a legitimate payment by impersonating an authorized individual. Thieves can establish schemes like this via email or phone and often include the threat of consequences if the business in question does not comply. A social engineering phone call, for example, may consist of the impersonation of an IRS agent demanding payment. Companies that fall victim to these schemes need crime insurance to cover losses.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.