Unfortunately, no organization is 100% safe from crime – even with the most advanced security measures money can buy. Whether it involves a private company or a not-for-profit organization, robbery or fraud, a rogue employee or an external threat, the potential for criminal activity is everywhere.
Consider these incidents reported to CNA:
- A fraudulent employee made up several nonexistent “ghost workers,” then spent the next three years collecting very real money on their behalf. By the time this embezzler was caught, the company had lost nearly $1 million.
- Another company’s CFO received an email, purportedly from the CEO, requesting a large payment to a bank account in Asia for “research and development.” The funds had already been transferred before it was discovered that the first email was sent by hackers, not the CEO.
While these situations are scary, there is good news. Both ended with a positive outcome, because each company was protected by a Crime Coverage policy. If you aren’t familiar with this type of insurance, you may have a few questions about how it works and how it could protect your organization.
What does crime insurance cover? Fidelity and Commercial Crime insurance is designed to help address losses stemming from employee dishonesty, forgery, robbery, computer and wire transfer fraud, and other criminal acts.
Isn’t that already covered by commercial property insurance? Not typically. Most commercial property coverage doesn’t cover crime, especially when it’s committed by company employees.
Does my organization really need this? That’s your choice to make. But remember that even a single act of theft or embezzlement can have a devastating effect – perhaps even threatening your organization’s very existence. Most private companies victimized by fraud lose more than $160,000, and not-for profit organizations suffer a median loss of $75,000.*
Is all crime insurance the same? No, and there’s no one-size-fits-all solution. Be sure to examine the details, as some policies offer limited coverage and reduced limits that may be insufficient for your organization’s needs.
What are my options? CNA offers crime policies to a wide variety of businesses and organizations, and can tailor coverage to your specific situation. This may include Excess Crime Coverage, which provides support above and beyond what you’ll find in most package policies.
Learn more at our Fidelity and Commercial Crime page, or contact a CNA agent directly to discuss customized solutions for your organization.
*Report to the Nations 2018 Global Study on Occupational Fraud and Abuse, Association of Certified Fraud Examiners; https://s3-us-west-2.amazonaws.com/acfepublic/2018-report-to-the-nations.pdf