Commercial Crime Insurance
Commercial Crime is on the increase and our increasing reliance on technology provides more opportunities for commercial crime to be perpetrated and go undetected for longer.
Traditional high risk / low reward crimes such as robberies and thefts, which are generally insured under a commercial combined policy, are being replaced by lower risk / higher reward crimes which exploit the same technologies that we rely on day-to-day.
Our business systems, office photocopiers and even our mundane tasks such as emails and diaries are all technology-based which means we are more vulnerable than ever to leaving the door open to criminal activity.
The Office for National Statistics put the number of incidents of fraud at 5.1 million in 2017, with 2.5 million of these falling under the Computer Misuse Act of 1990.
Some of the examples of claims from the last 12 months include:
Fund Transfer Fraud – An electronic, telephone or fax instruction which purports to have been sent by the insured but which was fraudulently transmitted by someone else without the insured’s knowledge or consent, usually to authorise the transfer of funds to an unauthorised account.
Invoice Fraud – A letter posted to the insured party purporting to be from a supplier advising of a change of bank details – credible as it was on the same letterheaded paper as a genuine supplier of the insured party.
Banking Fraud – An insured party receives a phone call from their bank. The caller is able to recite recent transactions for the account which reassures the insured that the call is genuine. Over the course of the conversation the insured party discloses information that allows the caller access to their account and transfer of funds away.
A Crime Insurance policy can cover you for losses incurred from fraud (including funds transfer fraud), dishonesty, theft from the insured by anyone (whether employed by them or not), bribery, forgery and loss investigation fees.
Key facts you may not know about commercial crime:
* Most corporate crime is committed by employees
* Commercial crime insurance is NOT included in most commercial property policies
* Only a handful of cyber-related crimes are covered, so it is important to take out a Cyber Liability Policy to ensure you are fully covered.
It is important to note that a Cyber Insurance policy will not cover you for all commercial crime so it is important to take out Crime Insurance as well.