Commercial Crime

A Commercial Crime policy protects the Insured’s money and other property against theft by employees. It also covers malicious damage and theft committed by non-employees through computer hacking, extortion and fraudulent transfer instructions.

In addition, the policy also covers the contractual penalties which businesses often face when they can't deliver as a result of theft.

Question: What is the difference between a Commercial Crime policy and a Fidelity Guarantee policy?
Answer:

 

Commercial Crime

Fidelity Guarantee

Similarities

  • Provides cover for theft committed against the Insured by its employees
  • The Commercial Crime policy generally covers all that a Fidelity Guarantee policy would cover and more
  • Provides cover for theft committed against the Insured by its employees
  • The Commercial Crime policy generally covers all that a Fidelity Guarantee policy would cover and more

Differences

  • Covers computer fraud
  • Computer fraud excluded

 

  • Electronic data loss
  • Excludes electronic data loss

 

  • Covers theft or malicious damage arising out of a computer virus
  • Excludes computer viruses

 

  • Covers extortion
  • Excludes extortion

 

  • Covers contractual penalties
  • Excludes contractual penalties

 

  • Covers fraudulent transfer instructions
  • Excludes fraudulent transfer instructions

 

  • Includes losses from unidentifiable employees
  • Often excludes losses from unidentifiable employees

 

  • Claims preparation costs are automatically covered
  • Claims preparation costs are optional

 

  • The costs of recovery are typically included
  • Cover for the cost of recovery is optional

 

  • Reinstatement of office records is covered
  • Cover for the reinstatement of office records is optional

 

  • Automatic Reinstatement of indemnity limit
  • Reinstatement of indemnity limit is optional