What it is
Crime insurance covers theft of money and securities by employees, forgery, computer fraud, and social engineering (a convincing email that talks your team into wiring money to a fraudster). For fintech and any company moving customer money, limits and wording matter far more than the base form.
What it covers
- Employee dishonesty and theft
- Funds transfer fraud and computer fraud
- Social engineering losses, usually sublimited and conditional on verification procedures
- Forgery and money order fraud
- Client property theft at some carriers, relevant for platforms holding customer assets
What it does not cover
- Losses you cannot document
- Voluntary parting where the form's conditions were not met
- Trading losses and investment performance
- Crypto assets at many carriers unless specifically endorsed
What triggers buying it
- Your first finance hire or outside bookkeeper
- Wiring vendor or payroll payments
- Holding or moving customer money (fintech, marketplaces)
- A near miss phishing or payment fraud attempt
Who requires it
Investors and enterprise customers ask about crime cover in diligence for money moving businesses, and auditors like to see it everywhere else.
Typical limits
Commonly $1M to $5M. The social engineering sublimit is often far lower than the main limit, which is the number to negotiate.
Frequently asked questions
Is social engineering fully covered?
Rarely at the full limit. Most forms sublimit it and require callback verification procedures. We read the conditions with you, because claims are denied on procedure, not on intent.
Does crime cover ransomware?
No, extortion and ransomware sit in cyber. Crime is about theft of money and securities, including by your own employees.
Talk through your stack before you sign the next contract
Send us the term sheet, the customer MSA, or the renewal you are worried about. We will tell you plainly what it requires, what your current programme does about it, and what we would place differently.