Overview of Crime Insurance

Crime insurance is a property insurance policy that protects a business against financial losses suffered, as result of a crime. This includes everything from robbery and vandalism, to embezzlement and computer fraud. Many crime insurance policies also have provisions that protect business owners against losses that resulted from crimes committed by their employers. Crime insurance provides coverage that falls outside the scope of ordinary property insurance. The crime-related financial losses can be very devastating for businesses, especially for a small business. For that reason, a crime insurance policy is a worthwhile investment.

Understanding Crime Insurance

Crime insurance policies are sold by private insurance companies throughout United States. While most policies' coverage is limited to the state where they are sold, there are policies that provide coverage in several states and outside the United States. The policies are primarily sold to private businesses and non-profit organizations. Some insurance companies sell crime insurance to individuals. As with other private insurance policies, different states have different rules about what crime insurance providers can and cannot do.

Furthermore, different companies customize their policies differently. In many cases, insurance companies offer several different possible policies that come with different features and involve different price ranges. This is why a policy holder should carefully check to see what each crime insurance policy offers before choosing which one to buy.

What Crime Insurance Offers

Most crime insurance policies offer protection against theft of business office furnishing, computer merchandise, cash and anything else necessary to keep the business running. They also provide protection against computer fraud, malicious hacking and forgery of official documents. Some policies also cover the theft of intellectual property. This includes patents, plans and other internal documents related to the development and production of merchandise.

While all crime insurance policies cover damages resulting from actions of outside parties, only some policies cover damage from crimes committed by the company's employees. Furthermore, some state laws outright prohibit this practice. When shopping for crime insurance, business owners should check to see whether a policy includes protection against unlawful actions of the employees.

Value of Crime Insurance Coverage

Insurance companies will limit what they cover in damages. If the total value of the business owner's damages is more than the policy limit, they will have to cover the remaining costs out of their own pocket. Generally speaking, the more expensive the insurance policy is, the bigger the limits will be.

Location is another important factor of crime insurance. In effort to minimize risks, insurance companies will check the business location before deciding whether or not to accept the business owner's insurance application. The higher the crime rates are in the area, the more likely the insurance company is to decrease coverage options and limits. Contrary to popular belief, this is insurance coverage is not limited to violent crimes. In fact, the rate of property crimes, such as robbery or vandalism, is just as important.

Shopping for Crime Insurance

Some insurance companies sell crime insurance alongside other insurance policies, while other insurance separate it, or specialize in selling crime insurance. Business owners can find insurance companies that sell crime insurance by looking them up in business directories. Before approaching any insurance company, you should look it up at Better Business Bureau and  with the state Attorney General's office to avoid falling victim to fraudulent insurance companies.