Crime Coverage Insurance for Businesses

Businesses face financial threats that can impact their operations and clients' trust, including risks from employee theft, forgery, robbery, and fraud. When these incidents occur, the repercussions are often more profound than just financial losses.

Cooke Insurance assesses crime-related risks, provides insights on Crime Coverage Insurance options, and assists in deciding the right level of coverage for businesses.

What Is Crime Coverage Insurance?

Crime Coverage Insurance is designed to help businesses recover from financial losses caused by criminal acts, whether these acts are committed by employees or external sources.

This insurance focuses on direct financial losses, offering reimbursement for stolen money, securities, or property, as well as covering investigation costs and legal expenses.

Why Saskatchewan Businesses Need Crime Coverage Insurance

All across Saskatchewan, businesses manage cash and inventory daily, making them vulnerable to financial crime.

Here’s why having this coverage is crucial:

1. Employee Dishonesty Is a Leading Cause of Loss

Internal theft or fraud may go unnoticed for extended periods. Crime Coverage Insurance safeguards against such losses, a concern for businesses of all sizes. A clear example is the recent case of the SaskEnergy workers who were stealing fuel since 2023.

2. External Crime Threats Are Evolving

Robbery, burglary, and social engineering scams targeting businesses are on the rise. Even with strong physical security, financial exposure remains.

3. Legal and Contractual Obligations

While not always mandatory, legal frameworks and agreements may require businesses to have adequate protections in place, reinforcing the importance of maintaining such coverage.

4. Small Losses Can Have Big Impacts

A single incident, like a forged cheque or stolen client funds, can strain cash flow, damage client relationships, or trigger operational delays. Crime Coverage helps stabilize recovery.

What's Typically Included In Crime Coverage Insurance?

Coverage varies by policy, but most policies include the following core protections:

Employee Dishonesty/Fidelity Coverage: Reimbursement for losses due to fraudulent acts by employees, such as theft of money or property.
Forgery or Alteration Coverage: Protection against losses from forged or altered cheques, drafts, or other financial instruments.
Robbery and Burglary Coverage: Covers direct loss of money or securities from premises due to violent theft or unlawful entry.
Computer and Funds Transfer Fraud: Reimbursement for losses from fraudulent electronic transfers, social engineering, or computer-based fraud targeting your accounts.
Investigation and Legal Expense Support: Coverage for costs associated with investigating a crime and defending your business in related legal matters.

Crime Coverage and Internal Controls

Crime Coverage provides financial protection, but it works best alongside strong internal safeguards. Insurers often evaluate a business’s financial controls when underwriting coverage or determining limits.

Why Internal Controls Matter

Effective oversight can reduce both the likelihood and severity of fraud. Common safeguards include:

Segregation of financial duties
Dual authorization for large payments
Regular bank reconciliations
Background checks for employees handling funds
Written verification procedures for electronic transfers

Strong controls help prevent losses and support smoother claims handling.

Policy Conditions and Reporting Requirements

Commercial Crime policies typically require:

Prompt reporting of discovered losses
Maintenance of accurate financial records
Compliance with stated verification procedures

Most Crime policies operate on a discovery basis, meaning coverage applies when a loss is discovered during the policy period, subject to terms and conditions.

Cooke Insurance can review your internal controls and policy wording to help ensure your Saskatchewan business is properly protected.

Frequently Asked Questions About Crime Coverage Insurance

Is Crime Coverage included in a standard Commercial General Liability (CGL) policy?

No. CGL covers third-party bodily injury or property damage claims. Crime Coverage is a separate endorsement or policy that protects your business’s own financial assets from criminal acts.

Does this cover losses from social engineering or phishing scams?

Many modern Crime policies include Computer and Funds Transfer Fraud coverage, which can cover losses from fraudulent electronic instructions. However, specifics vary. Cooke Insurance can review your exposure and policy wording.

What documentation is needed to file a claim?

Typically, you’ll need police reports, internal investigation records, financial statements showing the loss, and proof of ownership. Cooke Insurance guides clients through the claims process to ensure timely submission.

How do I determine the right coverage limit for my business?

Factors include cash handling volume, inventory value, number of employees with financial access, and historical risk. Cooke Insurance can assist in assessing your exposure to help build a policy tailored to your Saskatchewan business.