Illustrative example
An employee dishonestly diverts business funds. The policy may contribute to the verified direct loss where the conduct is covered.
Direct financial loss from dishonest acts
Crime and employee dishonesty insurance
Fraud can look like a normal payment until the loss is discovered.
Crime insurance may cover specified direct financial loss arising from employee dishonesty, theft, forgery, computer fraud or certain funds-transfer events. The people, property, discovery period, proof requirements and social-engineering terms vary materially between policies.
Preparing the review
What information usually matters?
- Employee numbers, payroll, locations and staff with financial access.
- Payment authorisation, segregation of duties and bank-verification controls.
- Cash, securities, inventory and third-party property handled.
- Vendor changes, email instructions and social-engineering procedures.
- Prior losses, discovered circumstances, limits and discovery period.
Important boundaries
Crime and cyber policies can overlap but are not interchangeable. Voluntary payments following impersonation may have separate limits, conditions or exclusions.