When it comes to safeguarding a business, today's owners have more than a few options at their fingertips for "hedging" their investments with commercial crime insurance. The business insurance policy types known as commercial or business crime insurance can help in the battle with product loss, walk-off merchandise, or whatever you want to call it, as well as issues of theft and fraud from either within a business or from those outside of it.

To check out how business crime insurance providers are proving useful to all kinds of businesses, owners, managers and other business leaders can take a look online to help chart their own future with customized policies. Online resources for commercial crime insurance news and trends include:

1. Items for looking at how a crime insurance policy can alleviate the financial sting of dishonest activity by employees.

2. News on commercial crime insurance rates, policies and providers for protecting a company from theft from beyond its walls.

3. More on how crime insurance is used to cover not only physical damage to business assets, but also "loss of business" issues related to crime.

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Battle employee theft with commercial crime insurance

One aspect of crime that plagues business owners is employee fraud. Whether it's in the form of stolen merchandise, money taken from registers, false payroll, or embezzlement of some kind, it comes down to the same thing--liability. Commercial crime insurance addresses all of these cases according to the policy you buy.

I recommend: Articles like this one in the Insurance Journal show business leaders how to do damage control on employee dishonesty and fraud inside a company. Find more on this type of commercial crime liability insurance for keeping employee hands out of the till from sites like this one from Utter/Morris.

Look for commercial crime insurance for cash and securities assurance

Web users can also find out how to 'guard the fold' and protect the wealth of a business from outside piracy by con artists and those with access to company resources.

I recommend: Find out how these kinds of commercial crime insurance policies "cover your cash" at Nationwide. For a look at who's offering certain types of commercial crime insurance, check out the news at BNet "Who's offering Fidelity?"

Look for commercial crime insurance that provides more kinds of protection

There's more on the web for businesses considering commercial crime insurance: take a look at info resource sites to find out how commercial crime insurance providers can offer clauses for lost business, property damage and all of the other 'unknowns' that occasionally happen.

I recommend: Get resources for finding out how to cover property damage at CoverZones. Sites like the Otero Insurance Group site can help show how commercial crime insurance can cover property as well as even "interruption of business" claims.

Your business needs commercial crime insurance. Criminal employees cost U.S. organizations more than $400 billion each year. The average business looses over $9 a day per employee and 6% of its yearly revenue to fraud committed by employees. Out of every ten crimes made against businesses, nine are committed by employees. Frequently, it's long-standing, trusted employees who commit such crimes.

Although most large businesses and corporations automatically buy a global crime insurance policy, many small and medium-sized businesses neglect it—which puts them at higher risk of loss. With employee crime on the rise, now is not the time to cut corners by eliminating your commercial crime liability insurance. Still, as you check out commercial crime insurance rates, you may ask what insurance is best for you. Consider these types of commercial crime insurance:

1. Business Owner's Policies with crime insurance coverage

2. Commercial crime liability insurance for smaller businesses

3. Crime insurance coverage for larger businesses

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Buy BOP insurance with crime insurance coverage

Just as you carry a homeowner's policy on your house, you should also carry general insurance on your small or medium-sized business. Although your Business Owner's Policy (also called a BOP) won't protect every area of your business, it will cover the basics at a reasonable cost. At the very least, your BOP should cover property insurance, business interruption, casualties, liability--and crime protection.

I recommend: Wells Fargo offers business owner's policies covering property and liability. MAG Mutual provides BOP insurance to protect property premises, with specialized coverage for those in the medical field. Vern Fonk Insurance offers BOP policies for large and small businesses.

Select a comprehensive commercial crime insurance policy for smaller businesses

Even if your small to medium-sized business has a BOP, its crime coverage is probably insufficient. Limits are generally lower with BOPs, which is a problem primarily because employees tend to steal a little at a time; you may not notice discrepancies until the theft has cost your business a great deal. Therefore, speaking to commercial crime insurance providers is an excellent idea.

I recommend: AIG offers crime insurance just for small businesses, as does Daniels-Head Insurance. McGhee Insurance Agency provides crime insurance covering robbery, theft and "mysterious disappearance."

Find crime insurance coverage for larger businesses

Large businesses and corporations absolutely must have comprehensive crime coverage. Remembering that theft usually occurs over time and involves great sums of money, seek out commercial crime insurance brokers offering policies that are realistic in their coverage and allow for thefts to be discovered a year--or more--after the actual crime.

I recommend: Zurich offers up to $25 million in crime insurance for virtually any company--large or small; coverage includes computer fraud and theft, employee dishonesty, theft and forgery. Nationwide provides crime insurance for many businesses, including those requiring heavy coverage. Chubb is a leader in providing crime insurance for large companies.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Only some commercial crime insurance policies cover cybercrime, so read your policy carefully. Some business crime insurance providers consider cybercrime like any other theft, while others do not.

Commercial crime insurance is a type of policy that protects a business in the case of theft, embezzlement, fraud and other white collar crimes. You choose the coverage amount and can rest assured you will be reimbursed if any of these acts are committed against your company.

Since commercial crime insurance is a fairly new type of protection, you should review a number of key terms in order to understand the way that the coverage works and what is included in the policy.

Action Steps
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Crime insurance

The best way to start researching the terminology of crime insurance is to look at a definition of the phrase. Most agencies will define crime insurance as a policy type that protects against acts of robbery.

I recommend: Nationwide Mutual Insurance goes into more detail about crime insurance and what it covers.

Mono-line policies

Mono-line policies are a sector of commercial crime insurance that is offered to businesses that with to take out the coverage without it packaged into other insurance plans. Typically, mono-line policies will offer higher cap amounts and options.

I recommend: EInsure Quotes is a provider of crime insurance and has information on their mono-line policy options. Louisiana Restaurant Association is a mono-line insurance provider as well.

Employee dishonesty

Although coverage is offered for crime committed outside of the company, most crime insurance plans will include employee dishonesty protection. Employee dishonesty in the case of commercial crime insurance involves the embezzlement of money from the company.

I recommend: Get a definition as well as figures on employee dishonesty from the Utter Morris Insurance Brokers site.

Fidelity insurance

Fidelity insurance is another term given to commercial crime insurance. With fidelity insurance, you are protected against the loss of cash, securities or product inventory in the case of theft.

I recommend: Insure Hedge covers the meaning of fidelity insurance and the type of coverage included in these types of plans.

Commercial property insurance

With commercial property insurance plans, you may have inclusions for commercial crime coverage. A commercial property insurance plan typically covers burglary, fraud and other criminal acts committed on your commercial property. Many business owners package the two policy types together to have the most comprehensive coverage.

I recommend: Otero Insurance Group defines how crime insurance and commercial property insurance are packaged together.

Business owner's policy

Another type of commercial crime insurance plan is the business owner's policy. Inclusions are typically criminal acts, property damage and liability claims. With this type of packaged plan, your business will not need separate commercial crime insurance.

I recommend: Wells Fargo has details about their business owner’s policy coverage.

Staying abreast of laws and regulations for commercial crime insurance can help you protect your company’s assets. A commercial crime insurance policy reimburses businesses for losses associated with theft, vandalism and other criminal acts associated with employee dishonesty, including the current hot topic in crime insurance — the Terrorism Risk Insurance Act which deals with acts of terrorism. No matter the size of your business, you could be affected by commercial crime including acts of terrorism. Even mid-sized companies that lack internal controls often fall victim to commercial crime.

Some losses caused by business crime may not be covered by a commercial crime insurance policy, so it’s important for you as a business owner to understand how commercial crime insurance laws and regulations affect your coverage. To help you ensure you’re adequately covered and within your legal rights, you should:

1. Familiarize yourself with the Insurance Services Office (ISO) model forms and polices your state utilizes in regulating commercial insurance
2. Understand the legal requirements about commercial crime insurance set forth by ERISA, the law that covers employee retirement plans, to protect against people stealing retirement funds.
3. Stay up-to-date with changes in laws and regulations on commercial crime insurance by remaining current with news from the National Association of Insurance Commissioners and the Surety and Fidelity Association of America.

Action Steps
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Use ISO forms and policies to ensure compliance to commercial crime insurance laws and regulations

Commercial crime insurance is regulated by the states which generally use the model forms and policies provided by the Insurance Services Office (ISO). Making a habit of using these forms in your business will help you ensure your business's compliance with state laws and regulations on commercial crime insurance. The standardized format of the ISO's forms help businesses by simplifying the claim settlement process and help business owners reduce costs of lengthy or involved litigation. Rely on forms and policies from the ISO to ensure compliance to commercial crime insurance laws and regulations.

I recommend: The Insurance Services Office provides an explanation of their policy language and the rules they follow when providing policy forms for both personal and commercial use. The language and formats used in these forms, including those for crime and fidelity insurance coverage, make it easy to understand and use for even the least insurance-saavy business owner. IRMI.com provides additional information that risk management professionals will find helpful in watching for and catching commercial crime, including white-collar criminal acts that could be carried out by your own employees or non-employees. The article also discusses exactly company property or resources can be stolen and covered by this type of insurance.

Understand the legal requirements about commercial crime insurance set forth by ERISA

The Employee Retirement Income Security Act (ERISA) is a Federal statute passed in1974 and establishing minimum pension plan standards for private industry that covers employee retirement plans and involves specific legal requirements about commercial crime insurance to protect against employees stealing retirement funds or utilizing them in ways other than those intended by Federal regulations. Following ERISA regulations will help your business remain compliant when it come to commercial criminal insurance.

I recommend: The Hartford’s website explains in detail about fidelity/commercial crime insurance and ERISA Fidelity bonding requirements. Companies like The Hartford will offer its business customers automatic asset protection up to $1 million. CNA also offers coverage via Third Party ERISA which reimburses clients with plans covered for loss or fraud by a trustee, employee, bank/business officer, administrators, managers and contractors.

Stay abreast of changes in laws and regulations on commercial crime insurance

To make certain you are up-to-date on all law and regulation changes effecting commercial crime insurance, you'll need to keep up with key entities such as the National Association of Insurance Commissioners (NAIC) and the Surety and Fidelity Association of America (SFAA).

I recommend: The NAIC holds regular conferences and maintains committees, activities and offices handling government relations and securities valuations. The NAIC website offers a wide variety of the most current information pertaining to insurance regulation. The SFAA provides regular updates of state and federal advocacy from both a regulatory and legislative standpoint.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When determining how much commercial crime insurance you may need, it's important to consider the physical value of your business assets, the number of employees who have access to proprietary business information, the likelihood of your employees participating in dishonest activities and the effectiveness of internal controls you currently have in place to prevent employee theft and dishonesty.