Business Crime Insurance
Crime is a significant liability for any business—especially for businesses that deal in cash or use online payment systems. U.S. organizations are liable for more than $400 billion every year from fraud and abuse alone, according to the Association of Certified Fraud Examiners (ACFE). Unfortunately, a typical general liability insurance policy excludes this type of financial loss.
Fortunately, business crime insurance protects businesses from losses resulting from business-related crime. The insurance policy builds on a general liability policy and can be added to a current package or purchased as a standalone policy.
A business insurance policy would payout to a business that experienced a financial loss due to:
- Money stolen from a cash register by an employee
- Money embezzled by an employee through an electronic payment system
- Merchandise stolen by a robber
- Money lost by forged checks or payment authorizations
- Inventory that “walked out the door” during a busy time of day or similar situation
Businesses have seen an alarming surge in data breaches and other cyber crimes. 55% of small businesses reportedly experienced a data breach, and 53% suffered multiple breaches. In the past few years, data breaches resulted in major fines and legal fees for businesses large and small.
A data breach can damage more than your small business computer system—it can damage your reputation and put your customers and employees at risk. That’s why cyber insurance is a smart precaution for any size business.
In addition to legal fees and expenses, cyber insurance typically helps with expenses resulting from:
- Notifying customers about a data breach
- Restoring personal identities of affected customers
- Recovering compromised data
- Repairing damaged computer systems