isu armac insurance logo

Crime Insurance

Crime Insurance

While most company owners understand the value of commercial liability insurance, it is also important to protect a company from losses due to internal or external crime. Whether it’s a rogue accountant embezzling funds or a thief breaking in to rob the safe, these crimes can destroy a company. As with life insurance, the idea behind crime insurance is to protect against tragedies that no one sees coming. Let’s take a closer look at what crime insurance covers.

Crime Insurance: Just As Important as Life Insurance or Commercial Liability Insurance

Internal and External Theft

One of the principal functions of crime insurance is to cover dishonest acts such as employee theft, funds transfer fraud, forgery, and burglary. Employee theft continues to be a challenge for businesses everywhere, costing companies an extraordinary amount of money each year. This can be as simple as a retail clerk skimming money from a cash register or all the way up to a corporate financial officer orchestrating a multi-million dollar embezzlement scheme.

Of course, crimes committed against companies are not always inside jobs. Some individuals out there will saddle a company with losses by forging checks or passing counterfeit money, and these can generate direct losses in addition to legal fees if the company has to defend itself for having accepted these. There is also the more direct threat of robbery or burglary that leads to property damage or losses in money, securities, or other valuable property.  


Another benefit of crime insurance is protection against losses from certain types of cybercrimes. This is an increasingly prevalent threat in the modern world, and companies have accepted that it is here to stay. Cybercrimes are typically committed with the use of a computer and include everything from theft to digital piracy and ransomware attacks. They are committed by people both inside and outside of companies and can destroy a business in minutes.

It’s important to keep in mind that crime insurance covers a company’s loss of funds resulting from cybercrimes but typically does not cover losses that result from data breaches. Data breaches and certain other types of cybercrimes that indirectly lead to financial losses are usually covered by what’s called a cyber liability insurance policy, which is distinct from crime insurance. If you have any questions, be sure to check with your local insurance agent.

Difference Between Discovery and Loss Sustained

When considering crime insurance, it’s important to determine when you want the policy to be triggered. A discovery coverage policy applies to losses that are discovered while the policy is active. It doesn’t matter when the actual crime occurred, only when it was discovered.

In contrast, loss sustained coverage only covers losses that both occurred and were discovered during the time that the policy was active.

Armed with a better understanding of how crime insurance protects your company, it’s easy to see why most consider it an essential part of sound business strategy. Contact ISU-Armac Insurance Services to select the crime insurance policy that best protects your company.