Many people believe that losses of their business assets because of crime are already covered by their property insurance policies. This can be true in some cases; however, many commercial property insurance policies will have coverage exclusions that may prevent coverage of losses that occur as the result of some crimes, particularly crimes committed by employees which can leave businesses financially vulnerable at a time when they have already experienced the worst type of victimization.
Business crime insurance or business theft insurance covers business owners from various types of criminal activity. For example, specified crime policies protect business owners from employee theft or dishonesty as well as from traditional losses that occur through burglaries or robberies. Furthermore, while they are called crime policies, they frequently extend coverage in other scenarios, as well. Commercial crime insurance policies can be critical for cash businesses, because many business property policies will exclude coverage for the cash and checks on a premises if they are stolen, which can mean devastating loses for a business. Even more important, some property policies will exclude cash and checks if they are destroyed in a natural disaster or fire, but crime insurance policies will generally cover cash losses.