Category Archives: Crime Coverage

Crime Coverage, Fidelity Bonds

Overview of crime coverages

 

Today’s business environment is constantly evolving, and executive liability and crime exposures are rapidly changing
right along with it. Making sure your client’s insurance coverage is keeping pace is now even easier with the new
enhancements:
Multitude of coverages to suit every need
Below are some of the highlights of coverages
Loss from forgery or alteration of covered

instruments (including business credit card
instruments)
• Loss of money, securities and other property
on your premises or banking premises
• Loss of money, securities and other property
while in transit
• Loss from acceptance of unpaid money orders
and counterfeit money (including coins and
travelers checks)
• Loss from computer crime (including computer

Fidelity
Includes coverage for employee theft, ERISA fidelity and
employee theft of client property for direct loss of, or
direct loss from damage to money, securities and other
property.
–
Claim example:
An employee leveraged her role as
executive director to procure payment to fraudulent
vendors and to procure gift cards and other goods for
personal benefit.
Forgery or Alteration
Includes coverage for loss sustained through forgery or
alteration of outgoing negotiable instruments made or
drawn by you, or drawn on your account(s), or made or
drawn by one acting as your agent.
–
Claim example:
A signature of another person was
fraudulently signed on a check and cashed at the
insured’s bank . An affidavit
of forgery was executed claiming that the person’s
signature that appears on the check was not placed on
the check by that person.
On Premises
Includes coverage for direct loss from damage, money or
securities located inside the premises directly caused by
theft, robbery or safe burglary.
–
Claim example:
Rent checks from eight different
residents were stolen from inside the insured’s
premises. Loss was discovered after notices were sent
out to residents advising that payments were overdue
and one of the residents advised that his check had
already been cashed.
In Transit
Includes coverage for direct loss of money or securities
directly caused by theft, disappearance, damage or
destruction while in transit outside the insured’s
premises and in the care and custody of a messenger or
armored vehicle company.
–
Claim example:
A company lost money was stolen from its messenger’s
truck while in transit.
Money Orders and Counterfeit Money
Includes coverage for direct loss caused by the insured’s
good faith acceptance of worthless money orders or
counterfeit money.
–
Claim example:
A company received a counterfeit
cashier’s check for payment of delivered equipment.

Crime Coverage, Fidelity Bonds

Crime Insurance what is it?

Crime Insurance
For Private and Non-Profit Organizations

 

Crime insurance AKA Fidelity addresses the most common fidelity threats, including losses due to employee dishonesty, credit card forgery, computer fraud and theft and disappearance and destruction of property.  With crime protection from Bernard Fleischer & Sons, Inc, you can obtain a wide range of coverages to help protect your business against financial loss due to certain crimes.

You know and trust the people who work for you, but
that trust may be misplaced. After all, one third of all
employees admit to stealing from their employers. And
we’re not talking about the pens and paper: The median
loss from employee fraud is $175,000.*
Maintenance of strong, enforceable internal controls
should be a priority for any entity. Yet even the best
internal controls, no matter how well conceived,
frequently fall short of stopping a trusted employee
from engaging in fraudulent activity. In fact, the
median time length of occupational fraud schemes is
18 months, and the number one way that an employer
discovers a crime is by accident.*
Fidelity and Crime Coverage provides an important
backstop against the actions of a thieving employee. With
this coverage, your company’s assets are protected at
the time of a crime’s discovery, regardless of whether it
occurred prior to or during the policy period.
Why you need protection
Employee dishonesty is costly and pervasive.A high
percentage of business revenue was lost as a result
of occupational fraud and abuse. And, when it comes to
occupational fraud and abuse, your business’ size doesn’t
matter — no business is safe.
Claim scenarios
Stolen inventory –additional inventory of
products for alleged seasonal sales pushes. In reality, a
portion of that inventory was sold “out the back door”
unbeknownst to corporate headquarters.
Embezzlement –
An employee altered company deposit slips after
the owner of the company had approved them. The
employee would prepare two deposit slips: one
depositing funds into the company’s account, the other
depositing funds into the employee’s bank account.
Payroll fraud
A payroll employee had access to payroll checks and
vacation checks. Over an eight-year period, the clerk
issued duplicate checks on all legitimate employee
vacation pay.
False payment
In less than a year, a sales supervisor located outside
of the United States When customers legitimately purchased
and received goods, the employee stole their payments
for his own use. The employee attempted to cover up
the loss by substituting fraudulent checks drawn upon
other third party entities.
Billing scheme
Four employees colluded to defraud their employer
through a phony billing scheme. The employees, including
a supervisor, established fictitious vendors and submitted
bills for work performed by other, genuine vendors.
Innovative risk management services

 

To learn more about our fidelity and crime coverage,
talk with us 212 566-1881