Crime Insurance

How Crime Insurance can help you prevail against theft

According to the 2016 Report of the Nations by the Association of Certified Fraud Examiners, its estimated that the typical organization loses approximately five percent of its revenues each year to occupational fraud. Even valued and trusted employees can be susceptible to misappropriation of company funds, especially during times of increased economic and social stress.

Having Crime Insurance is more important than ever, but the rapid growth of COVID-19 and the subsequent economic challenges are putting strain on businesses like never before. In veterinary hospitals, petty theft is a common problem. Most businesses refer to this as pilferage. But, uncontrolled inventory can be easy to steal and convert to cash outside of the business. There are other ways in which an employee can steal. Below are just a few:

  • Keeping two sets of books
  • Stealing merchandise, inventory, etc.
  • Paying bills to a fictitious company
  • Making charges against inactive accounts.

Deception fraud (aka social engineering) losses have skyrocketed since cyber thieves have grown more adept at mimicking internal emails.

  • Since January 2015, the FBI has seen a 270 percent increase in identified victims and exposed loss, according to the Cleveland division of the FBI.
  • Social engineering losses are almost 100 percent preventable, but agents like Vetinsure play a critical role in educating clients about the risks.

Like any other type of business, veterinary practices are vulnerable to losses due to criminal activity inside and outside the business premises. Theft, embezzlement, forgery, and fraud are some of the crimes that may occur within or be perpetrated against your company. When a crime is committed, there will be crime-related losses.

Commercial crime insurance allows you to protect your business with coverage for loss in the event of a crime. Crime insurance may be purchased as part of a larger business insurance package or stand-alone.

What Does Crime Insurance Cover?

Crime insurance coverage protects businesses from the loss of money, securities, and other business property classified as “tangible.” Crimes against a business include:

  • Funds transfer fraud
  • Forgery or alteration of checks or other financial notes
  • Counterfeit money or money orders

Computer Fraud

Computer fraud is when an employee or other individual accesses the business’s computer system to fraudulently transfer company money or other tangible property to a place outside the business or bank. This may include actual fraudulent funds transfers or the more commonly seen fraudulent inducement.

Fraudulent inducement, also called social engineering fraud, involves an employee being tricked into voluntarily releasing business funds. Phishing schemes and fraudulent emails are the most common types of social engineering fraud.

Employee Dishonesty

Employee dishonesty is also called employee theft. This covers any loss or damage of money, securities, or tangible property caused by an employee. The definition of an “employee” as it applies to your business is critical here, and the crime insurance policy will outline it very clearly.

Employee dishonesty insurance does not cover business partners, owners, and often not even managers. It strictly covers the employees, contractors, and volunteers that work for the business.

Characteristics of Crime Insurance Coverage

The details of your crime insurance policy may vary depending on your insurer. There are some characteristics that most policies will have, though.

“Named Perils”

Most crime insurance policies list specific crime categories that will trigger the insurance coverage to go into effect. These particular categories are called the “named perils.”

Coverage Limits

Most commercial crime policies do not combine the limits of the policy’s coverage. This means that the policy parameters apply separately to each loss rather than grouping the total loss together.

Coverage Triggers

Commercial crime insurance policies typically are triggered in one of two ways:

  • Loss discovered – The policy applies to losses found during the time that the policy is in effect, regardless of when the event took place.
  • Loss sustained – The policy covers losses based on when they happened.

Regardless of when your loss was discovered, crime insurance can help you recover your losses and get back to running your veterinary practice smoothly and quickly.

Serving the veterinary industry since 2008, Vetinsure offers customized coverage and risk management solutions geared toward the specific needs of the vet industry. We make protecting your finances and business a priority, offering real insurance solutions to secure you from litigation and peril. For more information about crime insurance or to schedule a consultation to see what we can do for you and your business, call us today.