Crime & Fidelity Coverage
Commercial Crime Insurance for New York Businesses
Don't wait until you become a statistic. Get coverage that fills the gaps in your standard business insurance.
- NYS Licensed Agency
- Multiple Carrier Options
- Social Engineering Coverage Available
The Threat Is Real — And Growing
According to the ACFE 2024 Report to the Nations, organizations lose 5% of their revenue to occupational fraud annually—more than $4.5 trillion in global losses. The median loss per fraud case is $145,000. Small and mid-sized businesses can be hit especially hard because they often lack the internal controls and dedicated audit staff of larger organizations.
You trust your employees. You have to—your business depends on it. But occupational fraud and employee theft are more common than most owners expect, and schemes often continue for months or even years before they are detected. By the time a theft is discovered, the accumulated losses can be devastating.
Commercial crime insurance isn't about distrust—it's about prudent risk management. Your standard business insurance excludes employee theft, money and securities, and computer fraud. Without crime coverage, these losses come directly out of your bottom line. The Stan Steele Agency helps New York businesses explore crime coverage options tailored to their specific risks.
What Is Commercial Crime Insurance?
Commercial crime insurance (also known as fidelity insurance) protects businesses against financial losses from employee theft, fraud, forgery, robbery, and other criminal acts. It covers employee dishonesty, computer fraud, and forgery that general liability and business property policies specifically exclude.
A typical commercial property policy excludes employee theft, theft of money and securities, and losses from computer fraud. Commercial crime insurance fills these critical gaps, providing protection that is essential in today's business environment.
Important: ERISA Requirement
Commercial crime insurance is mandatory under the Employee Retirement Income Security Act (ERISA) for businesses that manage an employee benefit plan, such as a 401(k). If you have a retirement plan, you likely need this coverage to comply with federal law.
Types of Crimes Covered
Employee Theft/Dishonesty
Covers direct loss from theft or forgery committed by employees:
- ✓ Cash register theft
- ✓ Inventory theft
- ✓ Check tampering
- ✓ Payroll fraud
- ✓ Expense report fraud
Asset misappropriation schemes have a median loss of $120,000 (ACFE 2024 Report)
Forgery and Alteration
Covers losses from forged or altered documents:
- ✓ Forged checks and drafts
- ✓ Altered promissory notes
- ✓ Forged credit card transactions
- ✓ Modified financial instruments
Computer Fraud
Covers losses from unauthorized computer use to transfer funds:
- ✓ Unauthorized electronic fund transfers
- ✓ Hacker intrusions causing fund transfers
- ✓ Stolen credentials used for transfers
Different from cyber insurance—focuses on direct financial loss
Money and Securities
Covers theft of money and securities on premises or in transit:
- ✓ Safe burglary
- ✓ Robbery of deposits
- ✓ Securities theft
- ✓ Currency counterfeiting losses
Social Engineering Fraud — The Growing Threat
Social engineering fraud occurs when criminals manipulate employees into transferring funds or divulging confidential information. These sophisticated scams are increasingly common and costly.
Recent Examples:
- • A finance employee at engineering firm Arup was tricked into transferring $25 million after a video conference where fraudsters used AI deepfakes of the company's CFO (Fortune)
- • European retailer Pepco Group lost €15.5 million from a phishing scheme in 2024 (Pepco Group)
- • 65% of organizations experienced payments fraud in 2022 (rising to 80% in 2023)
Important: Social engineering coverage typically requires a specific endorsement beyond standard computer fraud coverage. Sublimits range from $10,000 to $250,000, with higher limits available. Ask us about adding this critical protection.
What Commercial Crime Insurance Does NOT Cover
Owner/Partner Theft
The policy does not cover theft by you, your business partners, or senior management. Only employee theft is covered.
Known Criminal History
If you hire someone with a known criminal record and they commit theft, it won't be covered. Background checks are important.
Data Breaches
Crime insurance doesn't cover data theft, customer notification costs, or cyber extortion. Separate cyber insurance is needed.
Indirect Losses
Business interruption, lost income, legal expenses, and consequential losses are not covered. Only direct financial losses.
Who Needs Commercial Crime Insurance?
High-Risk Industries
- Financial institutions — vulnerable to complex fraud
- Retail businesses — high cash handling
- Technology companies — access to sensitive data
- Professional services — client funds handling
- Transportation/logistics — cargo theft exposure
- Manufacturing — median loss of $267,000
- Wholesale trade — median loss of $361,000
- Mining — highest median loss at $550,000
Median loss figures from the ACFE 2024 Report to the Nations
You Should Consider Crime Insurance If Your Business:
- Handles significant cash transactions
- Gives employees access to financial accounts
- Has employees at multiple locations
- Has inventory that can be easily carried off premises
- Manages a 401(k) or employee benefit plan (ERISA requirement)
- Has limited internal controls or oversight
Is Your Business Protected From Internal Threats?
Let us discuss available commercial crime coverage options and how they differ from what standard property and liability policies typically address.
How Commercial Crime Policies Are Structured
First-Party Coverage
Protects your business from direct losses from criminal activity:
- ✓ Employee theft and dishonesty
- ✓ Direct financial losses
- ✓ Loss of physical property
- ✓ Proof of loss costs (forensic experts)
Third-Party Coverage
Protects against crimes by outside parties:
- ✓ Third-party forgery
- ✓ Social engineering fraud
- ✓ Theft by non-employees
- ✓ Robbery and burglary
Typical Policy Limits
Standard Options:
- • $500,000 limit / $5,000 deductible
- • $1,000,000 limit / $10,000 deductible
Social Engineering:
- • Sublimits: $10,000 to $250,000
- • Higher limits available with comprehensive policy
How Much Does Commercial Crime Insurance Cost?
Commercial crime premiums vary based on your industry, employee count, coverage limits, deductibles, and internal controls. Deductibles of $5,000 to $10,000 are common on standard policies. For pricing specific to your business, schedule a consultation or call 585-657-6101.
Factors That Affect Cost
Number of Employees
More employees means more risk. Multiple locations increase premiums further.
Industry Risk
Financial institutions, retail, and cash-heavy businesses face higher premiums.
Claims History
Past claims significantly increase premiums. Clean records qualify for better rates.
Security Measures
Surveillance systems, background checks, and internal controls can reduce premiums.
Filing a Crime Insurance Claim
Report Immediately
Notify your insurance company in writing immediately after discovery—typically within 30-60 days. Late reporting can void coverage.
File Police Report
File a police report for theft or fraud. This adds credibility and is often required by insurers.
Gather Documentation
Provide financial statements, inventory records, surveillance footage, and any evidence of the crime. Hard proof is essential.
Submit Proof of Loss
Complete a signed, sworn proof of loss within 60 days of the insurer's request. Insurers typically settle within 30-60 days.
Important: Losses based solely on inventory records without hard proof (like surveillance footage) are typically NOT covered. You must be able to prove the crime occurred.
Frequently Asked Questions
What is commercial crime insurance?
Commercial crime insurance protects businesses against financial losses from employee theft, fraud, forgery, robbery, and other criminal acts. It covers losses that general liability and standard property policies typically exclude, including employee dishonesty, computer fraud, and social engineering scams.
Does my business insurance cover employee theft?
No. Standard business insurance typically excludes employee theft, money and securities theft, and computer fraud. These require separate commercial crime coverage. Without it, you could face significant uninsured losses—organizations lose an average of 5% of revenue to occupational fraud annually.
How much does commercial crime insurance cost?
Commercial crime insurance premiums vary depending on your industry, coverage limits, claims history, and security measures. Policies are commonly structured with limits such as $500,000 or $1 million and deductibles such as $5,000 or $10,000, and the premium depends on the structure you choose. Contact our office at 585-657-6101 or schedule a consultation for a quote tailored to your business.
What is social engineering fraud coverage?
Social engineering fraud coverage protects against losses when employees are tricked into transferring funds to criminals posing as legitimate business contacts. This typically requires a specific endorsement with sublimits ranging from $10,000 to $250,000, though higher limits are available.
Related Business Coverage
Cyber Liability Insurance
Data breaches, ransomware, and cyber extortion require separate coverage beyond crime insurance.
Employment Practices Liability
Protection from wrongful termination, discrimination, and harassment claims.
Directors & Officers Liability
Protect leadership from personal liability for management decisions.
Important Information
This information is provided for educational purposes only and does not constitute legal or insurance advice. Coverage features, exclusions, and availability vary by carrier and policy.
Commercial crime insurance is written on a "named perils" basis—a loss must fall within specified categories to trigger coverage. Review your policy carefully.
The Stan Steele Agency is licensed to conduct business in New York State. License information available upon request.
We'll Help You:
- Identify your crime exposure risks
- Determine appropriate coverage limits
- Add social engineering fraud protection
- Bundle with other business coverage for savings
- Navigate claims if the worst happens
Protect Your Business From Crime Losses
Don't become another statistic. With median fraud losses of $145,000 and many victims never fully recovering their losses, commercial crime insurance is an important safeguard for any business. Monday-Friday 9AM-5PM EST • Protecting NY businesses since 1969.