Why Should Businesses Carry Crime Insurance?

crime insurance

Crime is something you hear about happening to other people…until it happens to you. Even when warning signs are present, businesses rarely anticipate that they will be a criminal’s next target, and when it does happen, the consequences can be disastrous. There are many strategies a business can employ to try and avoid this fate — better security, for example — but few are as effective as investing in crime insurance. If you have clients who ask how crime insurance works, read on for more information about how a crime insurance policy can benefit them.

Protection From Theft

Many business owners wonder what business crime insurance covers. One of the major benefits of crime insurance is the protection it affords in the event of theft. If a theft occurs, the loss that is incurred is often covered by an insurance policy. This is beneficial to businesses that are often subject to loss via theft from multiple directions. Customers can certainly engage in theft, but so can employees — and the latter can be a devastating loss. Documented losses that can be attributed to theft are one of the most common claims covered by crime insurance policies.

Protection From Fraud

Fraud is yet another crime that businesses are often targeted for. Fraud comes in many forms, including fraudulent transactions, computer fraud, and even bank transfer fraud. All of these can cause potential losses to a business if it is not properly protected. In the case of a fraudulent transaction, for example, a customer may write a check, only to have the check bounce. Alternately, they may use a debit or credit card and later erroneously dispute the charge. In either scenario, a business will likely miss out on the funds for the sale, but an effective crime protection policy can help recoup losses.

Premises Damage Coverage

Theft and fraud aren’t the only crimes that can cause losses to a business. Plenty of criminals wreak havoc by inflicting physical damage to a business and harming their premises. This can be just as costly — if not more so — as a fraud or theft incident. Consider a situation, for example, wherein property damage occurs during a riot. The expenses from such a situation can exceed thousands of dollars. That’s why a comprehensive crime coverage insurance plan is imperative to protect a business from all kinds of criminal activity.

Coverage for Other Damages

Criminal attacks are very rarely expected, and many business owners take a risk by betting that they won’t become a victim. When a crime occurs, they are left to recoup the expenses if they aren’t enrolled in a criminal protection policy. Businesses need to secure a crime insurance policy in order to protect their investments and minimize the risk of daily operations.

About Cochrane and Company

For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (509) 462-1148.

   

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