What are the two forms of crime insurance?

What are the Two Forms of Crime Insurance?

Crime insurance, also known as fidelity and burglary insurance, is designed to protect individuals and organizations from financial losses resulting from various types of criminal acts. In this article, we will explore the two main forms of crime insurance: Employee Dishonesty Insurance and Theft Insurance. Each form provides unique coverages and benefits to minimize the impact of criminal behavior on businesses and individuals.

Employee Dishonesty Insurance

Employee Dishonesty Insurance is also known as Fidelity Insurance. This form of crime insurance protects policyholders from losses resulting from fraudulent or dishonest acts by employees. These acts include, but are not limited to:

• Embezzlement
• forgery
• alteration of books or records
• Misappropriation of funds

Employee Dishonesty Insurance provides coverage for losses stemming from these acts, allowing policyholders to recover monetary damages. This type of insurance is particularly important for businesses that handle cash or other valuable assets, as it provides an added layer of protection against employee deceit.

Theft Insurance

Theft Insurance is designed to provide coverage for losses resulting from the theft or disappearance of tangible property, including, but not limited to:

• Cash
• Jewelery
• Electronics
• Artwork
• Collectibles

Theft Insurance provides coverage for criminal acts, such as:

• Burglary (breaking and entering)
• Larceny (petty theft)
• Conversion (misappropriation or misapplication of property)
• Theft of property belonging to others

Features and Benefits of Crime Insurance

Both forms of crime insurance offer several features and benefits, including:

Bodily Injury Cover
Both forms of insurance provide coverage for bodily injuries resulting from criminal acts

Property Damage Cover
Both forms of insurance offer coverage for damage to physical property resulting from criminal acts

Investigation Cost Reimbursement
If an investigation is conducted and it is determined that criminal activity has occurred, coverage will reimburse policyholders for investigation costs

Emergency Assistance
Policyholders are entitled to emergency assistance to minimize the impact of crime, such as security escort services or lock replacement

Coverage Limitations
Coverage limitations vary depending on the type of crime committed. For example, policies may have different limits for theft of cash, jewelry, or electronics.

Claim Procedure

To file a claim under Crime Insurance policies, policyholders must promptly report the crime to law enforcement and notify their insurer. The claim process involves the following steps:

• Notification of the crime and damage to the insurer within the specified time frame (usually 48 hours)

• Completion of a Claim Form and submission to the insurer

• Investigation conducted by the insurer or insurer-appointed investigator

• Determine if the loss is due to criminal activity

• If yes, the insured is entitled to coverage as outlined in the policy.

Conclusion

Crime Insurance, specifically Employee Dishonesty Insurance and Theft Insurance, provides an essential protection for individuals and organizations. These policies provide coverage against losses resulting from criminal behavior, including fraudulent acts by employees and theft of tangible property. By understanding the key features, benefits, and limitations of each form, individuals and organizations can more effectively mitigate the financial and emotional impact of crime on their lives.

FAQs

Q: Why do I need Crime Insurance?
A: Crime insurance provides protection against losses resulting from criminal acts, including those committed by employees or perpetrators of theft.

Q: What types of crimes does Crime Insurance cover?
A: Crime insurance covers theft, burglary, larceny, conversion, embezzlement, and forgery.

Q: What is the difference between Employee Dishonesty Insurance and Theft Insurance?
A: Employee Dishonesty Insurance covers losses resulting from fraudulent or dishonest acts by employees, while Theft Insurance covers losses resulting from criminal acts involving the theft of tangible property.

Table: Key Features and Benefits