What is Crime Insurance?

Crime insurance is a type of business insurance policy designed to protect companies from financial losses caused by various criminal acts. From owning a small retail shop to running a large corporation, your business is vulnerable to crimes like employee theft, forgery, fraud, and burglary. It is even more critical for companies in high-crime areas or industries that are more prone to theft, such as convenience stores. Without this coverage, recovering from these crimes can cause severe financial strain.

What is Included in a Crime Insurance Policy?#

Crime insurance policies are designed to address criminal risks that businesses encounter in their daily operations. It functions as a core component of an organization’s risk management strategy. The scope of this insurance extends to numerous internal threats, such as employee dishonestyA category of crime coverage for losses caused by an employee's theft, fraud, or other dishonest acts committed against the business, as opposed to crimes committed by outsiders. (e.g., theft or fraud committed within the organization), as well as external threats that impact a business outside its walls. Let’s look at what is typically included in these policies.

Employee Theft

Covers losses when an employee steals money, goods, or sensitive business information. Businesses rely on this coverage against financial damage by internal dishonesty.

Burglary and Robbery

Covers losses from physical break-ins or robberies where money, equipment, or other valuable items are stolen, helping you swiftly recover from theft incidents.

Forgery and Alteration

Protects the business if someone forges company checks, financial documents, or manipulates papers for personal gain.

Theft of Money and Securities

Protects against the loss of cash or securities stolen from your business premises, during transit, or even from a secure storage facility.

Credit Card Fraud

Helps businesses recover lost funds if company credit cards are misused, unauthorized transactions occur, or associated risks arise.

Computer Fraud

Protects against cyber threats and covers financial losses from hacking, phishing, and unauthorized access to your accounts or data systems.

Social Engineering Fraud

Protects businesses from scams where criminals trick employees into transferring money or sharing data (e.g., fake executive emails or phone calls).

Loss of Property Due to Employee Dishonesty

Applies specifically to stolen equipment, physical goods, or corporate assets directly linked to employee theft.

Theft from Outside the Premises

Ensures that assets like cash, securities, or equipment are protected when they are outside your primary business location (e.g., during transit to a bank).

Funds Transfer Fraud

Protects against financial losses resulting from unauthorized money transfers from your business bank accounts due to hacking or fraud.

What is Not Covered Under Crime Insurance?#

While crime insurance is broad, certain exclusions apply. Knowing what is excluded helps you patch potential gaps with other policies:

• Employee Theft by Owners: Acts committed by you, partners, or directors are excluded.
• Theft of Personal Property: Employees' or customers' personal property is not covered.
• Damage to Property: Physical damage to your building (requires Property Insurance).
• Losses from Unlawful Activities: Criminal acts committed by the business entity itself are excluded.
• Losses from Vendors or Third-Party Fraud (unless covered by specific policy endorsementsA written amendment attached to an insurance policy that adds, removes, or changes coverage from the original terms — often used to add specific protections not included by default.).
• Losses Due to War or Terrorism: Standard exclusion across all commercial linesInsurance industry shorthand for the various categories of business insurance policies (property, liability, crime, etc.), as opposed to personal lines like auto or homeowners insurance..
• Cybercrime Data Breaches: Ransomware data restoration or notification costs (requires Cyber Liability).
• Loss of Funds Due to Poor Business Decisions: Bad investments or business transactions.
• Theft Not Reported Timely: Failures to report within the specified policy timeframe.
• Indirect Financial Losses: Lost potential income due to business disruption.

Crime Insurance vs. Fidelity Bonds#

Many business owners confuse Commercial Crime Insurance with Fidelity BondsA three-party surety agreement (not a traditional insurance policy) that reimburses a business if a bonded employee commits theft or fraud — often required by client contracts as proof of trustworthy staffing.. While both address theft and dishonesty, their applications differ:

How Much Does Crime Insurance Cost?#

The cost of crime insurance varies based on the size of your business, industry, location, and the coverage limits you choose. Small businesses with basic coverage typically pay between $650 and $2,500 annually. Premiums may be higher for larger firms or those in high-risk industries like retail or financial services.

Who Needs Crime Insurance?#

Crime insurance is for all businesses that are at risk of both internal and external theft, fraud, and cybercrime. It provides an essential safety net, mitigating financial losses so owners can focus on what is important. Retail, finance, and hospitality industries are highly exposed to these risks. However, the need for crime insurance extends to any business that deals with cash, sensitive information, or valuable assets.

1. Retail Store Owners managing significant cash transactions and inventory.
2. Restaurants and Food Service Businesses handling physical cash registers and employee shifts.
3. Manufacturers with valuable raw materials or inventory vulnerable to theft.
4. Franchise Owners maintaining standard security controls across multiple sites.
5. Hospitality Businesses (Hotels, Motels) managing customer transactions and premises access.
6. Real Estate Agents and Brokers managing trust accounts or escrow fundsMoney held by a third party on behalf of others until a transaction (like a property sale) is complete — a common target for fraud, so it carries heightened crime-coverage requirements..
7. Healthcare Providers handling billing systems and sensitive patient details.
8. Construction Companies keeping tools, equipment, and building materials on job sites.
9. Technology and Data Companies protecting expensive hardware and digital systems.
10. E-commerce Businesses with physical storage locations or shipping hubs.
11. Non-Profit Organizations managing donor funds and public accounts.
12. Transportation and Logistics Companies moving assets and valuable cargo.

How to Get Crime Insurance in 3 Easy Steps#

Getting protected is fast and simple. Insure C-Store matches your business risk profile with top carriers to find optimal coverage. Get started online today.

Frequently Asked Crime Insurance Questions#

According to industry research, employee theft costs US businesses an estimated $50 billion annually ¹, with convenience stores and retail outlets facing higher burglary rates ². Standard cyber security tools block many external attacks, but social engineering scams remain highly successful ³.