A business can become a crime victim the same as an individual. This is why some business owners opt for crime insurance coverage. It can help a business recover from damage caused by a criminal act. Most types of business insurance deals with natural disasters, but crime coverage is more concerned with man made acts of violence.
What is a Crime Policy?
Crime insurance provides financial assistance following certain acts of crime. It helps businesses recover financially when crime has impacted the company. For instance, a construction company employee might steal all of the company’s equipment. In that case, the policy would help the company recover from the theft.
Who Needs Crime Coverage?
Most companies are eligible for this type of policy. That’s because any business can fall victim to a criminal act. However, some industries are exempt from this type of coverage. Most notably banking institutions, attorneys, and claims adjusters are generally excluded. A business owner should check to see if their business is eligible.
The policy provides compensation when a business experiences a criminal event. But the policyholder must file a claim showing proof of the event. There must also be proof that a financial loss occurred. If the claim is approved, then the policy will pay a monetary benefit to the business.
Various types of business crimes are covered. Some of the most common include employee dishonesty, forgery, computer fraud, funds transfer fraud, kidnap, ransom, or extortion. It’s best to speak with an insurance agent for more information. An agent can help determine which type of coverage is best for a business.
Crime coverage is beneficial because it helps businesses recover from criminal acts. A criminal act could possibly destroy a business. But with crime coverage, the business will be better prepared to bounce back and deal with the event.