Commercial Crime

Employee Dishonesty Coverage:

Insider fraud is a major cause of loss for business owners, amounting to millions of dollars each year. Increasingly, long-term, trusted employees and senior executives are the source of some of the larger employee dishonesty losses. It is precisely these people who are familiar enough with the business to have the knowledge of its vulnerable areas. Employees also have the added opportunity to cover their tracks so the act can be repeated.

This coverage will protect your business in the event fraudulent or dishonest acts are committed by an employee which results in a loss of money, securities or property. This coverage is also known as a fidelity bond.

There are two types of Employee Dishonesty coverages available:

Employee Dishonesty Form A: One limit applies per loss, no matter how many employees are involved, all employees are covered. There is a limit that is purchased and this is the amount payable, regardless of how many employees are involved in a loss.

Employee Dishonesty Form B: The limit applies separately for each employee involved. Coverage does not have to be purchased for all employees. This offers more flexibility to increase amounts that can be purchased for those employees who offer the greatest potential for loss.

Loss Inside the Premises Coverage

This insures the loss of money and securities by the actual destruction, disappearance or wrongful abstraction within your premises or at any banking premises.

Loss Outside the Premises Coverage

This insures the loss of money and securities by the actual destruction, disappearance or wrongful abstraction outside the premises while being transported by a messenger, armoured car or in the home of any messenger.

Depositors Forgery Coverage

Depositors forgery coverage is a valuable addition to coverage when a significant number of cheques or other negotiable instruments are written Coverage is provided for the forgery or alteration of the insured's cheques, drafts and similar instruments only, and not the receipt of forged negotiable instruments received in the course of a transaction. Even if the endorsement or alteration to such a negotiable instrument is not considered a forgery by law, the policy will consider it to be so, and coverage will be provided.