Crime & Fidelity Insurance: Protecting Your Business from Internal Fraud

Crime and fidelity insurance protects a business against direct financial loss caused by dishonest acts, most commonly employee theft, but also forgery, computer fraud, funds transfer fraud, and social engineering schemes.

It fills a gap that other policies leave open. General liability responds to third-party bodily injury or property damage claims, not a business's own stolen funds. Cyber liability responds to a network security incident, but not necessarily to an employee who simply wired company funds to a fraudulent account, social engineering fraud like business email compromise often needs its own specific coverage or endorsement within a crime policy.

Common covered scenarios include an employee embezzling funds over time, a forged company check, a fraudulent wire transfer request impersonating an executive, and theft of money or securities by an employee.

Businesses that handle client funds, payroll, or significant cash and wire activity are the ones that most need this coverage: money services businesses and fintechs, professional services firms holding client funds in escrow or trust, and any company with more than a handful of employees who have financial access.

Machaen Insurance Agency sizes crime and fidelity coverage to a company's actual cash handling and wire activity, rather than defaulting to a generic limit that doesn't match the real exposure.

Frequently Asked Questions