Commercial crime coverage form is a crucial insurance policy that provides protection to businesses from financial losses resulting from criminal activities such as theft, forgery, and embezzlement. This coverage form includes various insuring agreements that specify the scope of the policy. In this article, we will discuss eight common insuring agreements used by the commercial crime coverage form.
1. Employee Theft: This agreement covers financial losses resulting from theft or embezzlement by employees. It includes all current and former employees and covers all forms of property, including money, securities, and other assets.
2. Forgery or Alteration: This agreement covers financial losses arising from forgery or alteration of checks, drafts, promissory notes, and other financial instruments. It also covers losses caused by counterfeit currency.
3. Inside the Premises Theft: This agreement covers financial losses resulting from theft, disappearance, or destruction of property inside the insured premises. It includes money, securities, and other assets.
4. Outside the Premises Theft: This agreement covers financial losses resulting from theft, disappearance, or destruction of property outside the insured premises. It includes property in the care, custody, or control of the insured.
5. Computer Fraud: This agreement covers financial losses resulting from computer-related fraud, such as theft of money, securities, or other assets by unauthorized access to a computer system.
6. Funds Transfer Fraud: This agreement covers financial losses resulting from fraudulent instructions to transfer funds from the insured`s bank account to another account or person.
7. Money Orders and Counterfeit Paper Currency: This agreement covers financial losses arising from the forgery, alteration, or counterfeit of money orders or paper currency.
8. Miscellaneous Crime: This agreement covers financial losses from various criminal activities not covered by the other insuring agreements. It includes losses resulting from robbery, burglary, extortion, and damage to property caused by crime.
In conclusion, commercial crime coverage form provides essential protection to businesses from financial losses arising from criminal activities. The insuring agreements discussed in this article are just a few of the many options available to customize the policy to meet the specific needs of your business. Consult with your insurance provider to understand all the coverage options and choose the right policy for your business.