Money and Securities – Crime Insurance

Crime Insurance – Money & Securities Coverage

Even though law firms aren’t a very cash-heavy business, that doesn’t mean they don’t have some on the premises.  Surprisingly, cash is one of the items listed as “property not covered” on the standard property policy.  Not to worry, though, there is actually a specialty policy that will cover cash, but it is on a different policy than your property.  The proper way to cover cash is actually on a Crime Insurance Policy.

A Crime Insurance Policy is specifically designed for various types of claims excluded from the standard property policy, including money and securities, and computer fraud, to name a few.

What is considered money on an insurance policy? On a Crime Policy, money is defined as currency, coins, banknotes, travelers’ checks, register checks, and money orders held for sale to the public.

What types of scenarios are covered? The Crime Policy covers the following types of losses to money and securities:

• Robbery
• Burglary
• Theft
• Disappearance
• Destruction

What are the standard limits for crime insurance?

A standard crime policy will have two limits: “On-premises Coverage” and another for “Off-premises Coverage.” The limits can be any amount you choose, but we will typically see a $10,000 limit for “On-premises Coverage” and a $2,500 limit for “Off-premises Coverage.”

Are there any major exclusions on a crime insurance policy?

Although coverage is comprehensive, there are some key exclusions contained in the coverage form to be aware of:

• Employee theft is excluded.  A separate employee dishonesty coverage form needs to be purchased to cover the theft of money by employees.
• Accounting or arithmetical errors or omissions as the sole evidence of loss are excluded.
• Voluntary parting of property is excluded.
• Unauthorized transfer or surrender of money is excluded.  This can be covered to some degree by computer fraud coverage.
• For money off-premises to be covered, it needs to have your employee.

How much does this type of coverage cost?

Depending upon the type of policy you have and the limits required, coverage is typically very cheap, usually starting around $250 to $500 per year.  However, in some policies, insurance companies add it for no additional cost.