Aon  |  Financial Services Group

In an increasingly sophisticated and digitized business environment, more firms risk losses due to criminal activity. The traditional threats of robbery and physical theft have been overtaken by white-collar crime events involving internal actors and third parties – and, in today's world, the focus is on employees, electronic crime, and social engineering. Importantly, different categories of fidelity/crime risk co-exist no matter the type or size of the business.

Typically, fidelity/crime insurance exposures include employee dishonesty, theft of money and securities on-premises and in transit, forgery, funds transfer fraud, counterfeiting and more. There is an extensive array of potential threats, and criminals often take advantage of weak links in risk management, audit and compliance processes.

The following examples are commonly seen events impacting all types of companies:

  • Employee theft
  • Unauthorized funds transfers
  • Employee colluding with an external party
  • Receipt of counterfeit money
  • On-premises or in transit theft of money and securities
  • Computer-related crime (for money and securities; fidelity/crime policies exclude theft of information)
  • Forgery of specified documents
  • Social engineering fraud

Key Insurance Features

With the increasing sophistication of these risks, a sound risk management strategy is essential to achieve an optimized risk transfer solution for your firm. This will ultimately benefit how underwriters view your company’s risk with respect to crime policies or financial institution bonds. Insurers consider many factors that impact an organization’s risk profile, including the size and nature of your business.

Many insurer partners can help achieve comprehensive insurance protection in today’s market. Protection can incorporate multi-faceted coverage grants for many types of risk, ranging from the employee theft element, social engineering and funds transfer fraud to loss of money or securities in transit or contained within a vault.

Securing comprehensive coverage requires specialized experience – for example, subtle and material wording variations that exist among insurer offerings can significantly impact coverage responsiveness.