Commercial FAQs

Who needs commercial crime insurance?

All FAQs

Quick answer: Any business that handles cash, payroll, customer funds, or has employees with access to financial systems.

Who needs commercial crime insurance?

Almost any business with employees, cash, or financial accounts can face losses from crime, but it is especially important for organizations that handle other people’s money or have staff with access to funds. Where a dishonest employee or an outside fraudster could cause a serious financial loss, commercial crime coverage responds to that exposure.

Why doesn’t a business owners policy cover employee theft?

A standard business owners policy, the bundled property-and-liability package most small businesses carry, does not cover employee theft or social engineering fraud. Commercial crime insurance fills that gap as a separate policy or endorsement. Employee theft and fraud happen at businesses of every size, and small businesses are often hit hardest because they have fewer internal controls to catch it early. A single trusted bookkeeper or office manager can cause significant losses before anyone notices.

For example, a small Gwinnett County nonprofit gave its treasurer control of the checkbook and online banking. Over two years, the treasurer skimmed $45,000 through fake reimbursements. A commercial crime policy with employee theft coverage would have reimbursed that loss. Without it, donated funds are simply gone.

What types of businesses most often need commercial crime coverage?

The businesses with the highest exposure include:

  • Retailers, restaurants, and others that handle significant cash
  • Professional firms, nonprofits, and property managers that hold client or member funds
  • Any company with employees who can access bank accounts, write checks, or move money
  • Organizations required by contract or by their clients to carry employee dishonesty coverage

What does commercial crime insurance cover beyond employee theft?

Beyond employee theft, commercial crime policies can also cover forgery, computer fraud, and funds-transfer fraud. Funds-transfer fraud occurs when a criminal tricks an employee into wiring money to a fraudulent account. According to the FBI’s Internet Crime Complaint Center, business email compromise schemes cost U.S. businesses over $2.9 billion in reported losses in 2023 alone. Georgia businesses are not exempt from that pattern.

For example, a criminal posing as a vendor might send a Georgia business a spoofed email instructing them to update banking details for an upcoming payment. An employee follows the instruction and wires $30,000 to a fraudulent account. That loss falls under funds-transfer fraud coverage, not under a standard business owners policy.

How much does commercial crime insurance cost?

Coverage limits typically start around $10,000 and can run into the millions depending on the operation. Premiums for a small business with moderate exposure often fall in the $500 to $1,500 per year range, though the right limit depends on payroll size, cash volume, and how many employees have financial access.

Landlords, vendors, and grant programs sometimes require proof of crime or fidelity coverage before they will work with a business. Some professional licensing bodies and government contracts carry the same requirement. A certificate of insurance showing the crime or fidelity coverage satisfies most of those requests.

A coverage review can map your current business owners policy against your actual exposures and identify whether a commercial crime policy or endorsement closes the gap. Request a free coverage review and get a clear picture of where you stand.