Complete Guide — Updated August 2026

Complete Guide to Commercial Crime Insurance: Coverage, Costs & Who Needs It — 2026

Commercial crime insurance (also called fidelity insurance) protects businesses from financial losses caused by criminal acts — including employee theft, robbery, forgery, computer fraud, and social engineering scams. Most commercial property and BOP policies explicitly exclude crime losses.

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Commercial crime insurance (also called fidelity insurance) protects businesses from financial losses caused by criminal acts — including employee theft, robbery, forgery, computer fraud, and social engineering scams. Most commercial property and BOP policies explicitly exclude crime losses.

What It Covers ✓

  • Employee dishonesty and theft (the most common crime claim)
  • Robbery and burglary of money, securities, and property
  • Forgery and alteration of checks, promissory notes
  • Computer fraud — unauthorized transfers from your accounts
  • Social engineering / impersonation scams (wire transfer fraud)
  • Funds transfer fraud
  • Theft of client money in your care, custody, or control (fiduciary)

What It Does NOT Cover ✗

  • Cybersecurity incidents (requires cyber liability policy)
  • Intentional acts by owners / principals
  • Accounting errors or bookkeeping mistakes
  • Pre-existing known theft discovered before policy inception

Who Needs Commercial Crime Insurance?

  • Any business handling significant cash or liquid assets
  • Retail businesses and restaurants
  • Property managers handling client funds
  • Professional services firms with client trust accounts
  • Financial services businesses
  • Businesses with significant inventory tempting to employee theft

How Much Does It Cost?

Small business ($250K limit)

$400–$1,200/year

Mid-size ($1M limit)

$800–$2,500/year

Financial services / high risk

$2,000–$8,000/year

Deductibles

Typically $1,000–$5,000

Key Terms to Know

Employee Dishonesty

Covers theft by your employees — cash, inventory, company funds. The most common crime insurance claim. Explicitly excluded from most GL and property policies.

Computer Fraud

Covers unauthorized computer-based transfers of money from your accounts. Different from cyber liability — crime policies cover the theft itself; cyber covers the breach that enabled it.

Social Engineering

Covers losses from scams where an employee is tricked into transferring funds to a fraudulent account (CEO fraud, impersonation scams). Often available as an endorsement on crime policies.

Discovery Period

Crime policies are typically "discovery" triggered — they cover losses discovered during the policy period, regardless of when the theft actually occurred.

How to Get Commercial Crime Insurance

1

Audit your internal financial controls — separation of duties, dual approval for transfers, regular account reconciliation

2

Determine crime limits based on your average cash, inventory, and liquid asset exposure

3

Add social engineering endorsement — wire transfer fraud via CEO impersonation is now the fastest-growing crime claim

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Commercial Crime Insurance Frequently Asked Questions

Employee dishonesty (fidelity bond) covers theft by your own employees — stealing cash from the register, embezzling from business accounts, or taking inventory. It is explicitly excluded from GL and property policies and must be covered separately via a crime policy.