What is commercial crime insurance?
Commercial crime insurance covers a business against direct financial losses that arise as a result of theft and fraud by employees, computer fraud, loss due to a computer virus, electronic data loss, extortion, fraudulent transfer instructions or third-party impersonation fraud, among other things.
Our standard commercial crime policy covers:
Your staff stealing from you, alone or in collusion with others.
Direct theft by any person via a company’s computer systems.
Direct financial loss sustained as a result of a computer virus.
Direct financial loss sustained as a result of the malicious alteration or destruction of data.
Direct financial loss sustained as a result of an employee being threatened with physical harm.
Direct financial loss sustained as a result of fraudulent transfer instructions sent to a financial institution holding a company’s assets.
Third-party impersonation fraud cover
Direct financial loss sustained as a result of an employee transferring money in good faith from a company’s accounts as a result of a fraudulent instruction.
Three ways we do it differently:
At Commercial Crime Concepts we apply a franchise instead of an excess. When the loss exceeds the franchise amount, we pay the entire loss (subject to the limit of indemnity) and the insured pays nothing. As with the deductible option, losses that are smaller than the franchise amount are not claimable.
Sum insured = R1 000 000
Excess/franchise = R100 000
Loss = R250 000
Deductible – The insurer pays R150 000 (R250 000 less the R100 000 deductible)
Franchise – We pay the full R250 000 and THE INSURED PAYS NOTHING
Other insurers expect to be presented with a fully prepared claim. The insured has to provide full information as to what exactly occurred to cause the loss. This is often not as easy as it sounds and could ultimately result in large fees.
You also need to provide full evidence proving the quantum (amount) of your loss - this may be covered by your policy if you have a Claims Preparation Costs extension providing a limit that is sufficient to cover the costs that you are responsible for.
* This is not compulsory. Clients may conduct their own investigations if they wish.
Checking a prospective employees' criminal and credit record is an effective way to reduce employee theft and fraud.
Recent statistics show that 11% of people screened using the Automated Fingerprint Identification System (AFIS) were found to have a criminal record.
In addition, with the large number of casinos in operation in South Africa, many of our losses are perpetrated by people with gambling addictions.
These statistics, and others, led us to form a partnership with specialist vetting service provider, MIE. Commercial Crime Concepts’ clients all have free access to employee screening (subject to certain limitations). This reduces the risk of employing individuals with criminal, fraud or credit records, who are statistically more likely to commit crime.
No company is too small
to need this cover.
Gregg Smith — Managing Director, C3
Should you discover something which you think would be covered by the policy, please tell your broker as soon as possible, but within a maximum of 90 days.
Our investigators will help you through the entire process,
and together we will determine the way forward.