Crime insurance

What is it?

It is a type of insurance that protects the company against potential losses that may result from criminal activities of company employees or third parties.

What is insured?

Crime insurance protects the company’s assets (money, securities, other tangible assets) from damage caused by:

  • Appropriation of the property of a company that has been performed by the employees of the company or third parties in a criminal way;
  • Physical destruction or damage of company assets located on the premises of the company;
  • Damage caused to the client’s property by the employees of the company;
  • Third party criminal damage (for which the company is responsible) for clients assets;
  • Appropriation of property (cash) in an electronical way;
  • Phone fraud.

What costs are compensated?

  • Costs of investigating the event;
  • Costs of reduction of losses;
  • Defense expenses for the losses incurred by the client for a criminal offense when the company is liable for this event;
  • Other costs.

Why is it worth to insure?

Additional insurance coverage is possible

Possible extension of insurance coverage for the following offenses:

  • Cybercrime (for example, unlawful misappropriation of customer data);
  • Computer fraud (for example, unlawful misappropriation of funds committed by computer hacking);
  • Fraudulent transfers of funds (for example, damage incurred by the insured party due to fraudulent use of bank orders by third parties);
  • Fraudulent supplier (for example, an insured employee is mistakenly informed about the transfer of money for the services rendered on the bank account of a fraudulent supplier);
  • Fraudulent head of the company (for example, a third party, pretending to be the head of the company orders to transfer the company’s money to a bank account of criminal subjects).

Insurance benefits to the company

  • Provides wide and flexible insurance coverage for various types of criminal acts;
  • Lloyd`s of London insurers’ reliability and expertise in this field;
  • Huge amount of insurance benefits;
  • Remuneration of legal defense costs;
  • A quick and comprehensive analysis of the insured event by investigation experts.

Examples of cases

  • Fraud on payroll. The company’s financier was responsible for paying salaries to employees of the company. In the case of money transfer orders part of the money was periodically transferred to his personal bank account, thus illegally absorbing EUR 200 000 within 18 months period of time.
  • Unauthorized change of bank account number. The company employee informed the suppliers about the new bank account of the company and indicated in the future that all payments should be made to a new bank account, which was a personal account of the employee. The company has suffered a loss of EUR 76 000 through these unlawful actions of the employee.
  • Letter from the fraudulent head of the company. The company’s financier received an  e-mail from his head of the company where the latter was asking to transfer the specified amounts of money to certain bank accounts. Since the e-mail seemed convincing, the employee of the company transferred the money to the indicated accounts. Later it turned out that the head of the company’s email address was copied and illegally used to commit a criminal offense. The company suffered a loss of EUR 100 000.
  • A fraudulent supplier. The company’s financier was responsible for paying bills to suppliers. It was received an e-mail regarding non-payment of one invoice in which the supplier informed about the number of his bank account to which the transfer order needed to be made. The financier transferred EUR 35 000 to the indicated bank account number which later turned out to be unrelated to the actual supplier and was owned by a third party.