COMMERCIAL CRIME COVERAGE

Employee theft, fraud, Internet theft, and dishonesty is costing business millions of dollars. Worldwide, one third of all business insolvencies are a result of corporate fraud. According to the Association of Certified Fraud Examiners, fraud costs U.S. companies more than $600 billion annually. Often, fraud is caused by long-term employees who have been at the company 5 years or more. Computer hackers are another growing source of corporate theft.

Some of those crimes include:

How Does Fraud Happen
Most businesses do not have enough internal controls and security. This is particularly true of email guidelines, which is rapidly becoming a major vehicle for trade secret and proprietary data theft. Collusion between employees and third parties also contributes to employee fraud, as competitors try to gain access to confidential data, client records and trade secrets. Credit card misusage, check forgery and embezzlement also factor into fraud.

Employee Dishonesty
Employee dishonesty is a criminal act committed by an employee with the intent to cause the employer a loss and to obtain some benefit for the employee or a third party. Coverage insures against loss of money, securities, and property other than money and securities. The blanket form provides coverage for dishonest acts of all employees.

Forgery or Alteration
Forgery is creating a signature or document that is not genuine. Alteration is changing a document and is neither authorized nor intended. This coverage insures against loss caused by the forgery or alteration of a financial vehicle of the company. Examples are a check, a bank draft,or promissory note.

Theft and Robbery
Any act of stealing is theft- from property to data to trade secrets and cash. Disappearance is the unknown cause of loss. Destruction is the loss of certain property, it is usually the result of another cause of loss. Robbery involves theft with threat of personal injury. Safe Burglary means the removing property from a safe or vault with visible signs of forcible entry.

Computer Fraud
When a computer is used to steal property from the company, that is computer fraud.

Protect your business from the ever-growing problem of employee dishonesty and corporate fraud. Ask your Strategic Insurance Solutions, Inc. representative for help.