Cyber crime insurance, also called commercial crime coverage, protects businesses against financial losses from employee theft, social engineering fraud, funds transfer fraud, and digital embezzlement. Unlike cyber liability insurance (which covers data breaches and third-party claims), crime insurance covers first-party financial losses when someone steals money from the business directly. Our guide to media liability insurance costs and coverage details what digital and traditional media operations pay for content-related protection.
For businesses managing multiple locations and financial controls, crime coverage is an essential layer alongside GL, property, and cyber liability. For SBA-financed operations, hazard insurance covers physical property risk, but crime coverage addresses the internal financial risk that property insurance does not touch.
Key Takeaways
- What it covers: Employee theft, forgery, social engineering, funds transfer fraud, and computer fraud
- Not the same as cyber liability: Crime covers first-party financial loss; cyber covers third-party data breach liability
- Social engineering: Covers losses from phishing and impersonation scams that trick employees into transferring funds
- Cost: $500-$3,000/year for most mid-market businesses with $250K-$1M limits
- Fidelity bonds: Some industries require employee dishonesty bonds as a regulatory or contractual requirement
Disclaimer: This article is for informational purposes only. Consult our licensed advisors for guidance specific to your situation.
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