Commercial Crime Insurance

What is Commercial Crime Insurance?

Commercial Crime Insurance, also known as Fidelity Insurance or simply Crime Insurance, is a type of insurance. It protects business owners and organisations from financial losses resulting from criminal activities. These activities can include burglary, robbery, theft, employee dishonesty, email spoofing, social engineering, and other crimes committed by third parties.

Typically, this insurance coverage includes most of the man-made crimes. In some cases, it also provides compensation related to defending claims brought by third parties (who have suffered financial loss due to a cybercrime at the insured’s end), including legal fees and other expenses.

Some Real-Life Examples for Commercial Crime Insurance

• Globalisation and Tech - Globalisation and tech advancements have increased the risks of commercial crime, particularly during economic instability.
• Serious Threats - Theft, fraud, and deception from employees, external sources or both, especially for their personal gain. 
• Economic Uncertainty - Economic instability leads to criminal activity, like employee fraud, increasing during layoffs. 
• Cybercrime Surge - With reliance on technology, there is an increase in data breaches and business interruptions. 
• Cross-Border Risks - Global operations expose businesses to international criminals, further complicating detection. 
• Mergers and Acquisitions - Organisational changes because of mergers and acquisitions give rise to crime exposure. 

Who needs Commercial Crime Insurance?

Each business, irrespective of its size, location, and nature should have a Commercial Crime Insurance policy. This requirement arises not because any particular type of business is prone to a commercial crime incident but to the extent/scale to which it can be impacted.

E-mail phishing, theft, employee dishonesty, third-party fraud, forgery, social engineering, and embezzlement impact businesses of all types and sizes. Whether your employee misappropriates money from the company’s account, becomes a victim of a phishing attack or fraudulent instructions, or conspires with a third party to steal the company's assets over time, all these incidents can be considerably harmful to companies of all sizes today.

Why get Commercial Crime Insurance?

Crime Insurance is a must-have policy to make sure that you and your business are financially protected against different types of white-collar crimes.

Here are some additional advantages of buying this insurance - 

• The Commercial Crime Policy covers the investigation expenses incurred due to a root-cause analysis of an incident to speed up the recovery process.
• The policy also pays for legal costs incurred in defending a lawsuit filed by a client (victim) who loses money due to a cybercrime incident taking place at the insured's end. 
• Depending upon the nature of claim, the policy may also provide coverage for the payments of interest (either receivable or payable).
• Apart from basic protection, these plans also offer commercial crime coverage against social engineering crimes and expedite the recovery process by reimbursing for lost assets

Common Risk Scenarios for Commercial Crime Insurance 

Some of the most common risk scenarios where a Commercial Crime Policy may offer coverage include -  

• A fraudulent fund transfer claim involving an employee transferring funds to another account via fake instructions received by a CXO
• An accountant wiring small amounts to their account over a course of 5 years totaling to a claim of over $500K
• An employee of the insured company falling prey to a fake email coming from a vendor for processing a payment which eventually gets credited to an incorrect account.
• Faking signature on a cheque leaf that leads to withdrawal of funds.
• Stealing cash while in transit from one location to another.
• Stealing intellectual property papers and demanding a ransom in exchange.

✍️Remember that inclusions and exclusions can vary depending on the insurer and your business needs. For better clarity, always review your policy document carefully.

Commercial Crime Insurance Add-Ons

In many policies, you can find the option to extend the coverage by choosing add-ons. Here, we have listed some of the common add-ons to enhance the commercial crime insurance coverage:

• Investigation cost 
• Care, custody and control
• Contractual penalties
• Impersonation fraud
• Business interruption or business income losses
• Multi-year policy terms

Why Choose Policybazaar.ae for Commercial Crime Insurance?

Here are some of the reasons to choose Policybazaar.ae for commercial crime insurance coverage:

⭐ Policies from UAE’s Top Insurers

We are associated with the UAE’s top insurers, allowing you to find a range of business crime insurance plans that suit you best.

⭐ Expert Advisory

Whether you are confused about the policy, our experts will always guide you.

⭐ Uncompromised Transparency

We value your trust. That’s why our services are fully transparent—no hidden costs, no surprises, just the best for you.

⭐ Affordable Plans

You can easily compare policies and select the one that suits your company and your budget.

⭐ Instant Policy Issuance

No waiting, no paperwork—just a seamless digital process that lets you get your policy instantly, hassle-free.

How to Buy a Commercial Crime Insurance Policy in the UAE?

With Policybazaar UAE, it’s easy to buy comprehensive crime insurance for your business. Follow the steps below:

• Go to the homepage and explore the ‘Business Insurance’ section
• Select ‘Commercial Crime Insurance’
• Fill out the lead form with accurate details, such as name, phone number, and email address
• Apply, and soon you will receive a call from our representative
• After reviewing your details, our representative will guide you further

Factors Affecting Commercial Crime Insurance Premium

The cost of commercial crime insurance depends on various factors. Let’s understand some of them:

• Company's Revenue - Revenue is a key factor in pricing, as high-earning companies are more likely to attract fraud and threats. Insurers, therefore, usually charge higher premiums to businesses with larger revenues.
• Company Size - When determining the cost of business crime insurance, insurers review the number of employees a company has and who can access money or confidential data. More employees with access means higher insurance premiums.
• Nature of Business - The nature of a business has a direct impact on crime insurance costs. Companies in high-risk sectors, such as finance, retail, or jewellery, face higher premiums due to greater risks of theft or fraud and vice versa. 
• Location - Businesses operating in high-risk areas typically pay higher crime insurance premiums, as insurers consider these zones to be more prone to theft, fraud, or financial crimes compared to safer locations.
• Risk Management Systems - Insurance premiums also depend on security measures, such as alarms, cameras, and cybersecurity. Companies handling costly equipment or large cash amounts with solid security get lower commercial crime insurance premiums.

How to File a Claim Against Business Crime Insurance?

Simply follow the steps to file a claim against crime insurance coverage in the UAE:

Immediately Contact the Insurer 

As soon as you become aware of the financial loss/damage due to internal or external fraud or suspicious activities, notify the insurer immediately. Early reporting enables you to get instant assistance from the insurance company.

Note: In case of computer threats and other fraudulent activities, you need to file a police complaint first. The report is often required to initiate the claim process.

Collect the Supporting Documents

To file a business crime insurance claim, you need to submit several pieces of evidence or supporting documents. So, gather all the documents, such as CCTV footage, financial records, emails, etc.

Start the Claim Process

Provide all the details of the business crime or fraud to the insurer. Submit all the gathered documents to start the claim process smoothly.

Cooperate with the Claims Adjuster

The insurance company will assign a claim coordinator to you, who will assess the event and thoroughly evaluate all details. During this process, you need to answer and coordinate with the adjuster calmly and professionally.

Claim Settlement

Once the insurer passes the claim after evaluation, you will get the compensation for the loss/damage as per your policy.

Key Takeaways 

In today’s fast-growing business environment, threats such as fraud, theft, and cybercrime can strike unexpectedly. A ‘Commercial Crime Insurance’ policy acts as a strong safeguard, protecting your company’s financial interests and reputation. By securing the right coverage, businesses can operate without any struggles, knowing they are well-protected against unforeseen risks and potential losses caused by employees and third parties.

Frequently Asked Questions

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