Commercial Crime Insurance
Why Commercial Crime Insurance is important?
Commercial crime essentially refers to commercially related criminal activities such as fraud, employee dishonesty, computer fraud including hacking.
This type of criminal activity is commonly referred to as white collar crime. Major corporate losses can be incurred as a result of technological improvements within business operations. There are also breach risks by employees or third parties. Increased global business downscaling and merging increases potential employee criminal activity and dishonesty.
Businesses differ and each one has it’s own unique set of challenges to face, it is up to the business owner to make certain they purchase commercial crime insurance to meet their needs.
More about Commercial Crime
Unfortunately what is often the case is that it is those employees who have been employed for many years who manage to tamper and identify system loopholes in order to carry out carry out various criminal activities including cash and stock theft. Fraudulent operations are becoming elaborately sophisticated to the point of bribing employees and threatening them against their will to become accomplices. Be aware, too, of rogues who mimic suppliers, notifying companies of a change in banking details. Always check directly with suppliers before any change of information is implemented..
It is extremely important for business owners, in conjunction with your insurance broker, to conduct risk assessments in order to locate key weak spots that exist in all the operational functions. Prudent planning with regard to commercial crime insurance includes business owners taking into consideration any losses that may have occurred prior to the policy, that are only discovered after being insured, are also covered.
All said and done, regardless of size or prominence, all businesses face risks of falling victim to fraud and it should be part of any risk management programme to ensure that Commercial Crime insurance is in place.