Crime Insurance

Fidelity Bonding & Crime Insurance




Fidelity & Crime Insurance is an expanding class of protection.

Every kind of organization is vulnerable to fraud, theft and embezzlement. Criminal elements are finding new ways to use computerization and modern technology to threaten and attack corporations and organizations. Although the primary protection for a corporation’s assets is a well established system of procedures and internal controls, this should be reinforced by a crime insurance policy with appropriate coverage and limits.

Standard Coverage:

  • Employee dishonesty
  • Robbery and burglary committed on insured premises
  • Mysterious disappearance or destruction of money and securities
  • Off premises hold-up and robbery
  • Acceptance of counterfeit money and money orders
  • Cheque forgery

Specialized Coverage:

  • Computer fraud
  • Extension of credit on the basis of forged security
  • Extortion
  • Credit card forgery
  • The cost of investigating and proving an employee dishonesty loss
  • Mail coverage

Questions & Answers

Q: Is Crime Insurance expensive?

A: No, not compared with the cost of having an employee steal large amounts of money from you over a period of years. More than one business has gone bankrupt because of an undetected fraud perpetrated by a trusted employee.

Q: We’re a charitable organization! Who would steal from us?

A. Potentially anyone who works for you, including your directors. Dishonest Employees can justify stealing in many ways – they’re not paid, they’re not paid enough, they have a gambling or an addiction problem, or else they just don’t care. Recently, it was disclosed that an Ottawa charitable organization suffered a $1,000,000 loss when it was discovered that their financial director had been diverting funds for nine years. That’s not easy to explain to donors or to supporting organizations who provide funding.

Q: How much Fidelity coverage should we carry?

A: We can’t tell you how long an employee will steal or how much they can get away with. Fidelity Bonding is traditionally an area where companies don’t buy enough coverage. The Surety Association of America published a Dishonesty Exposure Index long ago, and we would be pleased to help you apply that formula, but in the end, employers need to examine their financial controls, review their experience and exposure, and purchase enough coverage to avert disaster.

Q: How do I apply for Crime Insurance?

A. Ask one of our professional Commercial Brokers about an Crime quotation prior to the next renewal of your commercial insurance program. You may be pleasantly surprised at how a properly constructed crime insurance program can provide peace of mind that your business won’t be stolen from under your nose.

For more information please contact Geoffrey H. Binks , CAIB, CCIB (Ont.), Vice-President Commercial Division (613) 226-1350