Does Business Insurance Cover Fraud?
The financial loss caused by fraud can be devastating for businesses, particularly small businesses.
This is where business insurance comes into play.
In this guide, we’ll discuss whether business insurance covers fraud and what types of policies you should consider.
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Types of Business Insurance That Cover Fraud
The types of business insurance that can cover fraud include:
Employee Theft Insurance
Employee theft insurance provides coverage for losses due to criminal activities, including theft and embezzlement, committed by employees.
This type of insurance is essential for businesses that handle cash or valuable assets and can help protect against financial losses caused by dishonest acts.
Commercial Crime Insurance
Commercial crime insurance provides coverage for losses due to various criminal activities, including fraud and embezzlement. It can cover losses related to employee theft, burglary, and robbery.
Commercial Property Insurance
Commercial property insurance provides coverage for the physical assets of your business, such as buildings, equipment, inventory, and furniture. It also covers theft, including embezzlement.
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. Some BOPs may include coverage for theft and embezzlement.
Fidelity Bond
A fidelity bond is a type of insurance that provides coverage for losses caused by employee dishonesty, such as embezzlement.
This type of insurance is typically purchased as a separate policy, but it can also be included in a business owner's policy.
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What Is Embezzlement?
Embezzlement is a type of fraud that involves an individual stealing money or property from their employer, typically an employee or other trusted individual. Embezzlement is a form of property loss and can be devastating for businesses.
Learn more in our embezzlement coverage guide.
How to Find the Right Business Insurance for Fraud Coverage
The best way to find the right policy is to discover the coverage options available and identify the policies that meet your business's specific needs.
Let's Find the Coverage You Need
The best insurers design exactly the coverage you need at the most affordable price.
FAQs
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.
Employee theft insurance, also known as fidelity insurance or crime insurance, is a business insurance policy that provides coverage for losses due to criminal activities such as theft, embezzlement, and forgery committed by an employee or group of employees.
A fidelity bond is a type of business 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.
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. This type of insurance can cover losses due to theft, including embezzlement.
A business owner's policy (BOP) is a package policy that combines different types of coverage that small businesses typically need, such as commercial property insurance, general liability insurance, and business interruption insurance. Some BOPs may also include coverage for theft and embezzlement.
Employee theft insurance covers 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.
Yes, some insurance companies offer standalone embezzlement insurance policies. However, it's more common for embezzlement coverage to be included in other types of business insurance policies, such as employee theft insurance or commercial crime insurance.