Commercial Crime Insurance

Commercial crime – theft or fraud from employees - is much more widespread than you may think, and studies show that it is on the rise, particularly as evolving technologies open up more opportunities for theft or fraud. Canadian employees steal approximately 20 billion dollars per year in money, securities, stock and other property from their employers, and the effect on your organization can be devastating to your bottom line. Whether you are a privately owned or publicly-traded company, you owe it to your stakeholders to ensure that you have protected your organization properly with crime insurance.

Many employers believe that their property or business owners insurance covers commercial crime, a mistake that can be very costly. Reliance Insurance can walk you through the specifics of your business, advise you on your options, and ensure that you have the correct coverage.

Some areas of coverage that your business may require include:

  • Employee theft
  • Forgery & alteration
  • Theft on your premises
  • Theft off premises
  • Theft while in transit
  • Computer fraud
  • Credit card fraud
  • Funds transfer fraud

Stay one step ahead of commercial crime

In this day and age, thieves (including your employees) do not need direct access to cash to steal from you; merchandise, supplies and securities are all fair game. You may also be susceptible to losses if finished products or even raw materials are stolen from you. Essentially, any product can be a target for thieves if there is an opportunity to make a resale profit.

The following examples represent common business thefts, specifically by employees:

• Keeping two sets of books.

• Stealing from the cash drawer.

• Stealing merchandise and materials.

• Charging inactive accounts.

• Paying bonuses to those who are not supposed to receive them.

• Increasing amounts on checks and invoices after they have been paid.

• Paying bills to companies that do not exist and then cashing those checks.

• Reducing amounts of outgoing invoices in the books, paying the reduced amount in cash and then appropriating the customer’s cheque.

• Padding payroll and cash expenditures.

• Not crediting cash payments.

• Removing ledger sheets from the business to cover up shortages.

• Invoicing materials below sale price and receiving the undercharge from the customer.

• Issuing checks for goods that were not returned.

• Stealing incoming payments and applying that money to subsequent remittances.

Insurance solutions to combat theft

Employee theft coverage: Protects your money and your business against theft, both from inside the organization and out.

Depositors forgery or alteration coverage: Protects against losses by forgery or alterations of checks, drafts, promissory notes, orders or directions to pay money that is drawn upon you or is drawn upon your accounts by someone acting as your agent.

Theft disappearance and destruction coverage: Protects against loss of money and securities by way of theft, disappearance or destruction while the property is on your business and/or banking premises.

  • Protects against losses as a result of attempted or actual robberies while the property was on your premises.
  •  Protects against loss to other property in a safe or vault from an attempted or actual robbery within your premises.
  •  Outside of your premises, coverage protects money, securities and other property in the care of a messenger.

Technology and work processes are constantly morphing and changing – call Reliance Insurance so that you can be sure that you have the coverage to stay ahead of the changes and pitfalls, to give you and your stakeholders peace of mind.


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