Crime Claims Scenarios

Employee theft

  • An employee of a property management firm stole rent paid in cash by a resident. The property manager's crime policy paid out $2,062 for the loss. 
  • A bike messenger employed by a trade association to courier cash deposits to a local bank was taking the cash and hiding it in the trunk of his car parked a few miles away. The theft was discovered when the employee was involved in a car accident, subsequently destroying a majority of the cash. The cash loss totaled $13,000, of which, $5,000 was salvageable from the wreck. The trade association's crime policy paid out the remaining $7,000, after the insured paid their $1,000 retention.

Funds transfer fraud

  • Multiple fraudulent credit card charges were made by an employee on the insured's corporate credit card. Losses totaling $6,849 were covered by insured's crime policy.
  • An employee skimmed money from the ATM machine in the insured's office location. The insured's crime policy paid out $95,000 for the claim. 

Personal accounts alteration

  • Over several years, an employee conspired with vendors to inflate product and service prices while the employee kept the difference. Losses totaled over $1 million; most of which was covered by the insured's crime policy.
  • A receptionist was discovered taking cash refunds of false returns and crediting her personal credit card. The insured made a claim for the recovery of the funds in the amount of $17,186 for the cash paid and credit card refunds paid to her personal credit card. The claim was a covered loss under insured's crime policy. In the meantime, the former receptionist was prosecuted by the local district attorney's office for the theft.

Employee forgery

  • An employee was caught forging money orders in the insured's name. The $1,000 loss was covered under the insured's crime policy. 
  • An employee broke into the insured's office building, stole checks, and cashed $16,000 worth of forged checks before he was apprehended. The insured's crime policy paid out $16,000, less the insured's $1,000 retention, for this employee theft and forgery claim.

Any examples in this article are for illustrative purposes only and any similarity to actual individuals, entities, places or situations is unintentional and purely coincidental. This material is not intended to establish any standards of care or to serve as legal advice appropriate for any particular factual situations. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. Copyright © 2013 Victor O. Schinnerer & Co. Inc. All rights reserved.

Underwriting Contact

Jessica Smith
301-951-6916
Jessica.Smith@victorinsurance.com

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