Businesses of all sizes face potential losses due to criminal activity. Depending on the nature, size and location of your business, your company may be vulnerable to various types of crime—from burglary to employee theft to fraud.
In addition to purchasing specialized crime (or “fidelity”) insurance, you will want to consider taking steps that prevent crimes from happening.
Taking precautions can deter criminals from targeting your business for burglary. Consider installing and maintaining:
If you’re starting a business or relocating, seek out a property that already has theft-prevention features in place. In addition—especially if your business is located in a high-crime area or you keep highly valuable property on your premises—you may want to consider additional protections, such as:
Burglary and theft are crimes against property, but robbery involves taking property from a person via force or threat. Train employees how to respond to robberies, and minimize losses by limiting how much cash is easily accessible.
Insider crimes committed by employees can be highly damaging to a business. As many as 20 percent of business failures may be a result of employee dishonesty, including theft, according to the American Management Association. The Association of Certified Fraud Examiners (ACFE) estimates that businesses annually lose on average 6 percent of their revenues due to employee crime. You can help prevent insider crimes by taking the following steps:
Your commercial property insurance—either as an endorsement or as a component of a package policy—may provide some coverage against robbery and burglary. Crime insurance also covers two important types of property excluded by standard commercial insurance: money and securities—including destruction or disappearance as well as theft.
Standard commercial property insurance also does not cover a range of business crimes, such as fraud or embezzlement. To extend your coverage against business or “white collar” crimes, you might want to consider purchasing crime insurance. This specialized insurance includes coverage for losses resulting from: