Crime INSURANCE

Protection from employee theft, forgery and fraud.

 
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2 MIN

Crime insurance basics with Myles

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What Crime does & doesn't cover
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Recommendations based on stage and vertical
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Which add-ons make sense for your startup
BECAUSE

The average fraud case costs a company $1,509,000.

WHEN
  • Launching your first product
  • Growing headcount
  • Increasing revenue
  • Acquiring high-value property acquisition
WHY
  • Protection from mistakes of managing benefit plans.
  • Protection from lawsuits for most benefit disputes including wrongful denial and improper change in benefits.
  • Employees can sue even if their claims are unsubstantiated.
See recommended limits based on your stage and vertical
GET COVERAGE RECOMMENDATION

THE PROTECTION

What Crime Insurance Covers

Employee dishonesty
Losses caused by employee theft or forgery.
Forgery or alteration
Theft done through forgery or alteration of documents.
Computer fraud and funds transfer
When a computer is used to fraudulently transfer funds.
Counterfeit currency
Losses caused when a computer is used to fraudulently transfer funds out of your account.
Losses that happen outside your business premises
Theft, damage, or destruction of property while in transit.
What it doesn’t cover
  • Costs resulting from a data breach, typically covered by Cyber insurance.
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FROM THE ACTUARIES

Crime Claims Examples

Case Study
Incident
The head of finance at a startup providing an online document management platform embezzles over $500,000 over a 5 year period by creating false vendor invoices, and substituting the check made payable to the vendor with checks made payable to himself. The startup’s bank eventually notices a discrepancy in the checks and the employee is caught. A claim is filed to recover the money lost.
Resolution
The crime policy pays the policy limits of $500,000 to the startup.
Incident
The Head of Accounting at an insurtech startup opens an email with an attached .zip file that contains a virus. The virus is able to obtain the username and password to the startup’s bank account. A wire is then initiated in the amount of $150,000 from the startup’s bank account to an unknown bank account. A claim is filed to recover the money lost due to the attack.
Resolution
The crime policy responds by paying the startup the $25,000 policy limits.
Financial losses due to embezzlement
Incident
The head of finance at a startup providing an online document management platform embezzles over $500,000 over a 5 year period by creating false vendor invoices, and substituting the check made payable to the vendor with checks made payable to himself. The startup’s bank eventually notices a discrepancy in the checks and the employee is caught. A claim is filed to recover the money lost.
Resolution
The crime policy pays the policy limits of $500,000 to the startup.
Costly email virus attack
Incident
The Head of Accounting at an insurtech startup opens an email with an attached .zip file that contains a virus. The virus is able to obtain the username and password to the startup’s bank account. A wire is then initiated in the amount of $150,000 from the startup’s bank account to an unknown bank account. A claim is filed to recover the money lost due to the attack.
Resolution
The crime policy responds by paying the startup the $25,000 policy limits.
INSURANCE 101

Crime Insurance and the Distinctions between Fidelity Bonds, Liability Coverage, and Errors and Omissions Insurance

The impacts of being uninsured or under-insured can be immense — crime coverage can manage this risk and bring peace of mind.
Keep reading
Crime Insurance and the Distinctions between Fidelity Bonds, Liability Coverage, and Errors and Omissions Insurance

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