Last Updated: February 16, 2024, 11:45 am by TRUiC Team


Does Business Insurance Cover Embezzlement?

While embezzlement is not the same as theft, it is still a form of property loss. As a result, many business insurance policies do cover embezzlement

In this guide, we’ll help you understand which business insurance policies cover embezzlement and where to find this insurance.

Recommended: Next Insurance is dedicated to matching small businesses with the right policies at the best price.

A person slipping cash into their pocket.

Types of Business Insurance that Cover Embezzlement

The types of business insurance that can cover embezzlement include:

  • Employee theft insurance
  • Commercial crime insurance
  • Fidelity bond
  • Commercial property insurance
  • Business owner’s policy

Employee Theft Insurance

Employee theft insurance, also known as fidelity insurance or crime insurance, is a type of insurance that provides coverage for losses due to criminal activities such as theft, embezzlement, and forgery committed by an employee or group of employees. 

This type of insurance can help protect businesses from financial losses caused by dishonest acts of their employees, which can be devastating to small businesses. 

It is essential for businesses that handle cash or valuable assets to consider employee theft insurance to ensure that they are adequately covered in case of any fraudulent activity by their employees.

Commercial Crime Insurance

Commercial crime insurance is a type of insurance that provides coverage for losses due to criminal activities such as theft, embezzlement, and forgery. 

This type of insurance can help cover losses related to theft by employees, burglary, and robbery. 

If your business handles cash or has valuable assets, crime insurance may be a good option for you. Make sure to review the policy carefully to understand what is and isn't covered.

Fidelity Bond

A fidelity bond is a type of insurance that provides coverage for losses caused by employee theft, including embezzlement. 

This type of insurance can help protect your business from losses due to theft by an employee or group of employees. 

A fidelity bond is usually purchased as a separate policy, but it can also be included in a BOP. Make sure to talk to your insurance agent to determine if a fidelity bond is right for your business.

Commercial Property Insurance

Commercial property insurance is one of the most common types of business insurance that covers theft, including embezzlement. 

This type of insurance provides coverage for the physical assets of your business, such as buildings, equipment, inventory, and furniture. If any of these items are stolen, including money stolen by an employee, commercial property insurance can help cover the cost of replacing them.

Business Owner's Policy

A business owner's policy (BOP) is a package policy that combines different types of coverage that small businesses typically need. 

This may include commercial property insurance, general liability insurance, and business interruption insurance. 

Some BOPs may also include coverage for theft and embezzlement. 

BOPs are usually less expensive than buying individual policies separately, and they offer a convenient way to get comprehensive coverage for your business. 

If you're interested in a BOP, make sure to ask your insurance agent if theft and embezzlement coverage is included.

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FAQs

The price of your business insurance will vary depending on the specific provider you work with. Check out our guide on affordable insurance companies.

Yes, some types of business insurance can cover embezzlement, such as commercial property insurance, business owner's policy, crime insurance, and fidelity bonds.

Commercial property insurance is a type of insurance that provides coverage for the physical assets of your business, such as buildings, equipment, inventory, and furniture.

A business owner's policy (BOP) combines several kinds of insurance that small businesses normally require, such as business interruption insurance, general liability insurance, and commercial property insurance.

Crime insurance is a type of insurance that provides coverage for losses due to criminal activities such as theft, embezzlement, and forgery.

A fidelity bond is a type of business insurance that provides coverage for losses caused by employee theft, including embezzlement.