Crime policies are not generally intended to cover the insured’s liability to third parties. Crime policies will not cover loss or damage to property unless the loss results from a covered crime. While often referred to as ‘crime bonds,’ crime policies are not surety bonds, they are insurance policies. The policy covers the insured against loss resulting from various third party crimes. It protects mercantile entities as well as public entities.
The Insuring Agreements for Crime products insures against
●Employee Dishonesty (or Fidelity) covers dishonesty acts by one or more employees
●Forgery or Alteration- Forgery is the signing of another person’s name with the intent to deceive and alteration is changing an existing covered instrument
●Inside the Premises-The covered crime is theft of covered property occurring on the Insured’s premises (Important note: covers disappearance or destruction in addition to the theft and covers damage to property that results from an actual or attempted theft)
●Outside the Premises (or in Transit)-The covered crime is theft of property in the custody of a messenger or armored car company (Important note: covers disappearance or destruction in addition to the theft and a messenger generally means an employee transporting property on behalf of the insured.)
●Computer Fraud (or Computer Crime)-The covered crime is use of a computer to gain access to a computer system and fraudulently cause money or securities to be transferred (Important note: computer crime committed by an employee against his or her employer is generally going to fall under Employee Dishonesty)
●Money Order and Counterfeit Paper Currency-The covered crime is the producing of fake money order or the counterfeiting of paper currency
●Loss of Clients’ Property Resulting from Employee Dishonesty (or Fidelity)-The covered crime is theft of the clients’ property by one or more of the insured’s identified employees (Important note: there must be intent to cause the client a loss and someone must obtain a financial benefit)
●Funds Transfer Fraud-The covered crime is a fraudulent instruction directing a transfer of funds (Important note: the person committing the fraud is generally going to claim to be or to represent the insured)
●Fraudulently Induced Transfers-The covered crime is a fraudulent transfer instruction by someone impersonating an employee, customer, vendor or owner of the insured (Important note: loss occurs when a check or payment is drawn or made by the insured based on the fraudulent instruction, the fraudulent instruction is made by a person purporting to be someone they are not)
