Crime Insurance in The Chicagoland Area and Across The Midwest

The need for crime coverage’s arose from exclusions found in commercial property forms. Most risks of physical loss of commercial property forms cover theft of merchandise and business personal property by other than the employee.

Theft of money, computer fraud and employee dishonesty are not usually covered except in minimal amounts in Business Owners packages and similar products. Crime coverage forms fill in the gaps.

Crime Coverage—Computer Fraud

Covers money, securities, and property other than money and securities against theft directly related to the use of any computer to fraudulently cause a transfer of the insured’s property to another person. The coverage is provided as a part of the ISO Commercial Crime Coverage Form.

Any automotive operation that regularly transfers funds through the computer should consider this coverage.

Crime Coverage—Employee Dishonesty

This coverage is the only place where dishonest acts of the employee are covered. The coverage includes any items of the employer that the employee takes. Coverage may be provided using either a standard ISO form or a Surety Association Form.

Automotive operations provide multiple opportunities for employee dishonesty, starting with the ordering of supplies and parts, continuing with the cash register and ending at the back door as monies, services and
items are disbursed. This coverage is a must.

Crime Coverage—Employee Dishonesty Including Customer’s Property

This coverage is the only place where dishonest acts of the employee are covered. The coverage includes any items of the employer that the employee takes. Some businesses have employees who regularly operate at a client’s premises. If so, they need coverage for dishonest acts of the employee at that client’s premises.

This coverage may be needed if employees operate on customer’s premises for any reason especially if pick- up and delivery of vehicles is a service offered.

Crime Coverage—Extortion

Covers loss of money, securities and other property resulting directly from extortion. Covered persons and covered territories are determined by the insured when they purchase the coverage. Coverage is available through a standard form through ISO but also may be purchased through specialty markets if the territories are particularly dangerous.

Automotive operations often have owners as part of their TV and radio commercials, who then can become local celebrities. This could make them a target for kidnap and extortion.

Crime Coverage—Forgery Or Alteration

Covers when someone—not an employee or owner—forges a signature on a check or other monetary instrument in order to obtain money that belongs to the insured. Coverage may be provided using either a standard ISO form or a Surety Association form.

Automotive operations are very busy places with many people milling around. Even with the best of intentions, doors are left unlocked or ex-employees may enter with a key. There are many opportunities for checks to be taken and then forged. This protection could be very important.

Crime Coverage—Lessees Of Safe Deposit Boxes

Covers the loss of securities or other property (NOT MONEY) that is in the insured’s safety deposit boxes at a specific location. The loss of securities may be caused by theft, disappearance or destruction while the loss of property other than securities must be due to burglary, robbery or vandalism.

Automotive operations that use safety deposit boxes, particularly for securities, should consider this coverage.

Crime Coverage—Theft, Disappearance and Destruction – Money and Securities

Covers money and securities inside the insured’s premises or at a banking premise against theft, disappearance or destruction. Provision is made for similar coverage outside the premises when money and securities are in the custody of a messenger.

Automotive operations should consider this coverage since it is the broadest money crime coverage available.

Crime Coverage—Robbery And Safe Burglary – Money and Securities

Covers money and securities inside the insured’s premises or banking premises, while in a safe or vault, against robbery and safe burglary, and outside the premises while in the care of a messenger, against robbery.

Automotive operations may want to consider this coverage as an alternative to the more expensive theft, disappearance and destruction coverage.

Crime Coverage—Securities Deposited With Others

Covers securities while inside a custodian’s premises, while being transported by a custodian, or while on deposit in a depository against loss caused by theft, disappearance or destruction. The custodian must be named and the depository must be specifically scheduled. Coverage is provided by showing a limit, a custodian and a depository on the dec page.

An automotive operation with securities that are kept outside the premises should consider this coverage.

Crime Coverage—Premises Burglary (Other Than Money and Securities)

Covers property other than money and securities, inside the premises, against loss caused by robbery of a watch-person or burglary. This is covered using the ISO Standard Crime Form.

Any automotive operation that has purchased Business Personal Property Special Cause of Loss Form would not need to purchase this coverage, but if the special Cause Of Loss Form is not available, this coverage could provide some necessary coverage.

Crime Coverage—Premises Theft (Other Than Money and Securities)

Covers for loss by theft, property other than money and securities that is inside the premises. This is covered using the ISO CR 04 05. Coverage could be accomplished by using the Special Cause of Loss Commercial Property Form.

Automotive operations should consider this coverage when the Special Cause of Loss Form is not available.

Crime Coverage—Robbery And Safe Burglary (Other Than Money and Securities)

Covers property other than money from actual or attempted robbery or safe burglary. Coverage inside the premises may be written to cover both robbery and safe burglary or may be limited to either robbery or safe burglary. Coverage outside applies to robbery of property other than money in the care and custody of a messenger.