Crime and fidelity insurance protects your company’s own money and property from employee theft, embezzlement, forgery, social engineering fraud and funds transfer fraud. This guide explains what it covers, where the sublimits and verification conditions decide a claim, and how it fits with cyber and D&O.
Written by Sophia Zaller of Alton Risk, a former carrier-side underwriter. Updated October 2026.
First-party insurance for direct financial loss to your own money, securities and property from theft and fraud, including employee dishonesty, forgery, funds transfer fraud, computer fraud and social engineering.
Who needs it
Any company that handles money, processes payments, or holds client funds or assets. Exposure rises with headcount, vendor payment volume and digital asset holdings.
Biggest pitfall
A token social engineering sublimit, or verification conditions the company never actually follows, so the policy looks strong on paper and fails on the claim.
What decides a claim
The social engineering sublimit against a realistic wire, verification conditions, who counts as an employee, discovery versus loss-sustained triggers, and digital asset exclusions.
Digital assets
Often the hardest part. Most carriers exclude cryptocurrency holdings entirely, and placements for exchanges and custodians have gone through Bermuda and Lloyd’s relationships.
The basics
What is crime and fidelity insurance, in plain English?
Fidelity and crime insurance protects your company’s own money and property from theft and fraud. It responds to direct financial loss: cash that left, securities that were taken, property that disappeared. That makes it a first-party coverage, which is different from the liability policies most founders buy first.
The cleanest way to place it is by who lost the money. If a customer sues you, that is a liability claim. If your own funds were stolen or diverted, that is crime. If a hacker breaches your network and exposes data, that is cyber insurance (data and network events). If investors sue your leaders over decisions, that is D&O (claims made against your leaders). Crime is the policy for money that was taken from you, not claims made against you.
Most companies buy a commercial crime policy, which bundles several insuring agreements into one form. The older term, fidelity bond, refers to the employee dishonesty piece. The two names are often used loosely, and the glossary entry explains how they relate. For fast-growing technology companies, crime matters more than its low profile suggests, because payments move quickly, finance teams are small and a single fraudulent wire can be larger than a year of operating budget.
Who needs it
Who needs crime coverage, and when?
Short answer: any company that handles money, processes payments, or holds client funds or assets. The need grows with the number of people who can move money, the number of vendors you pay and the value of what you hold for others. This is general guidance, and your lawyers and auditors can tell you where specific duties apply.
Founders handle everything
A few people, a bank account and a card. Low volume, but one account takeover still hurts.
Know the risks
Vendors and payroll
More invoices, more wires, more people who can approve a payment change.
Buy now
Finance hires
Segregation of duties becomes possible, and so does internal theft.
Add controls
Client or fund money
You hold property that belongs to others, and contracts start asking for proof.
Required
Digital assets
Custody, wallets and keys raise the hardest placement questions.
Specialist
Rule of thumb
Buy crime before the first large vendor wire or the first client dollar, not after the first suspicious email.
Where you are
Do you need crime?
Why
Founders only, small bank balances
Worth discussing
Exposure is limited, but a compromised email account or a spoofed invoice can still redirect a payment. Revisit when volume grows.
Paying vendors by wire or ACH regularly
Yes
Payment instructions change, invoices get spoofed and a convincing email can move real money. Social engineering and funds transfer cover are the core.
A finance or operations team with payment authority
Yes
More people with access means more risk of employee theft. Crime pairs with sensible approvals and separation of duties.
Holding customer, client or fund assets
Yes, often required
Contracts and counterparties frequently ask for crime or fidelity coverage, sometimes with client property cover and a loss payee.
Administering a retirement plan
Yes, a bond is typically required
ERISA generally requires a fidelity bond for people who handle plan funds. A general crime policy may not satisfy it, so confirm with your plan advisor.
Fintech, payments or lending
Yes, with higher limits
Moving other people’s money magnifies every fraud scenario. See our fintech page.
Digital assets, custody or an exchange
Yes, and expect a specialist placement
Standard crime forms commonly exclude crypto. See the digital assets section below and our digital assets page.
Scope
What crime insurance covers, and what it doesn’t
Short answer: it covers direct loss of money, securities and property caused by theft, fraud and certain computer or transfer crimes, subject to the limits and conditions on each insuring agreement. It generally does not cover lawsuits against you, data breach response or losses from ordinary business decisions.
What’s Covered
Money, securities or property taken by employees, often extended to contractors and temporary staff by endorsement
Forged checks or altered payment instructions
Fraudulent instructions sent to your bank to move money (funds transfer fraud)
Unauthorized use of a computer to take money or property (computer fraud)
An employee tricked into sending money to someone posing as a vendor, executive or client, where social engineering cover is purchased
Loss of property you hold for others, available on some forms
What’s NOT Covered
Most crime policies exclude:
Cryptocurrency and other digital assets, unless specifically added
Losses from ordinary business risk, bad investments or failed deals
Indirect or consequential loss, such as lost profits or reputational harm
Lawsuits against the company or its leaders, which belong on liability policies
Data breach response, forensics and notification, which belong on cyber
Losses where an insured knew of the dishonesty before the policy began, or acts by owners in some forms
How the policy is built
What are the main insuring agreements in a crime policy?
Short answer: a crime policy is a bundle of separate insuring agreements, and each one has its own limit, retention and conditions. A big headline limit tells you little until you see how it divides across them.
Employee theft and dishonesty
Pays for money, securities or property taken by employees acting with intent to cause you loss. Many forms define who counts as an employee narrowly, so ask about contractors, interns, temporary staff and leased workers.
Why it matters: a theft by someone the policy does not treat as an employee can fall outside cover entirely.
Forgery and alteration
Covers loss from forged or altered checks, drafts and similar instruments that you issued or that were drawn on your account.
Why it matters: payment fraud often starts with an altered document, and the wording decides which instruments count.
Funds transfer fraud
Covers fraudulent instructions, sent to a bank or financial institution without your knowledge or consent, that cause money to move out of your account.
Why it matters: it usually does not apply where your own employee knowingly sent the instruction, which is why social engineering is separate.
Computer fraud
Covers loss from unauthorized use of a computer system to take money, securities or property. The wording ranges from narrow to broad.
Why it matters: whether a fraud that began with a hacker but ended with an employee approving a payment counts depends on the policy language.
Social engineering fraud
Covers loss when an employee is deceived by someone impersonating a vendor, executive or client into sending funds or changing payment details. Often added by endorsement with its own sublimit.
Why it matters: this is the agreement most likely to be sublimited, conditioned and disputed. The next section covers it in depth.
Client and third-party property
Covers loss of property you hold for others, where the form includes it. Some forms cover only your own property.
Why it matters: if you hold client funds or assets, your contracts may expect this cover.
Impersonation fraud
Does crime insurance cover social engineering and wire fraud?
Short answer: only if the policy includes social engineering coverage, and often with a sublimit far below the policy limit and conditions you must meet. Many base crime policies exclude it or cap it at a token amount, so the sublimit and the verification wording usually decide the outcome. See the social engineering fraud and business email compromise glossary entries for background.
Is the sublimit realistic?
Compare the social engineering sublimit with the largest payment your company actually sends in a day, not with your headline limit. A sublimit is a cap inside the policy limit, not on top of it.
Why it matters: a policy that looks generous but pays a small fraction of a typical wire is the most common disappointment.
What verification is required?
Many forms require that the employee verified the payment change through a documented call-back to a known number before sending funds. Others require written procedures or a second approver.
Why it matters: if the condition was not met, the insurer may deny the claim even though the fraud is real.
Rule of thumb
Write down your payment verification steps first, then ask whether the policy’s condition matches what your team really does on a busy Friday.
Which policy responds?
Crime vs. the coverages it’s confused with
Fraud and theft rarely arrive labeled. Here is how common, hypothetical situations usually map to the policies a growing company carries. Actual results depend on the policy wording, so treat this as a starting point for a conversation, not a coverage opinion.
Scenario
Crime policy
ERISA fidelity bond
Cyber
D&O
A bookkeeper quietly diverts customer payments to a personal account over several months
Covered, if employee theft applies
No
No
No
Finance wires funds to a fraudster after a spoofed vendor email changes bank details
Covered, with social engineering cover
No
Sometimes, if a cyber crime extension applies
No
A hacker takes over a payment portal and moves funds out of company accounts
Often covered under funds transfer or computer fraud
No
Sometimes, depending on the form
No
A hacker steals customer data and the company must notify and investigate
No
No
Covered
No
A plan administrator takes retirement plan contributions for personal use
Check the form and whether the plan is an insured
Responds, if the bond is in place
No
No
Investors sue the board after a down round
No
No
No
Covered
An employee steals digital assets from a company wallet
Often excluded unless digital assets are added
No
No
No
Crime vs. cyber
Where do crime and cyber overlap, and where are the gaps?
Short answer: cyber insures the breach, crime insures the stolen money, and the loss that sits between them is where claims get disputed. Some cyber forms add limited funds transfer or social engineering cover, and some crime forms add limited computer fraud cover, but neither is built to replace the other.
Event
Usually belongs on
Gap to watch
Ransomware shuts down systems
Cyber
Crime does not usually respond to extortion or downtime. Read the ransomware coverage terms on the cyber form.
Fraudulent wire after a spoofed email
Crime with social engineering cover
Cyber forms may cover it only as a small sublimit, and may require a network event.
Stolen customer data
Cyber
Crime does not respond to a breach of information that did not cost you money directly.
Account takeover that drains a bank account
Crime (funds transfer or computer fraud)
The question is whether the loss came from unauthorized access or from an employee approving a payment.
Employee steals funds with their own credentials
Crime (employee theft)
Cyber generally excludes dishonest acts by your own people.
The practical answer is to buy both and to ask both carriers how they would respond to the same hypothetical loss. If each says the other policy should pay, you have found a gap before a claim does. Our cyber and technology E&O page covers the other side of the overlap.
Fidelity bond vs. crime
Fidelity bond versus crime insurance
Short answer: a fidelity bond is the older name for employee dishonesty coverage, and most companies now buy a commercial crime policy that includes it. Some situations require a bond by law, and a general crime policy may not satisfy them. For example, ERISA generally requires a fidelity bond for people who handle retirement plan funds.
What does an ERISA bond do?
It protects a retirement plan against loss from fraud or dishonesty by people who handle plan funds. The plan is the protected party, not the company’s own money.
Why it matters: a crime policy is built to protect the company, so it is a different tool from the bond a plan may require.
How is the bond amount set?
In general it relates to the amount of plan funds handled, subject to limits set by the rules. Your plan administrator, auditor or counsel can confirm the requirement for your plan.
Why it matters: we do not set it for you, and an undersized bond can create a compliance problem.
Can one policy do both?
Sometimes a crime policy can be endorsed to meet the bond requirement, or the plan can be added as an insured. Many companies buy the bond separately.
Why it matters: check with whoever audits the plan before assuming one form satisfies both.
Related coverage for retirement plans, such as fiduciary liability, protects the people who run the plan against claims. It does not replace the bond.
Triggers and limits
Discovery or loss sustained: when does the policy respond?
Short answer: crime policies are written on either a discovery basis or a loss-sustained basis, and the difference decides whether a loss found after the policy ends is covered. Discovery forms respond to losses discovered during the policy period, subject to the wording. Loss-sustained forms respond to losses that happened during the period, even if found later, usually within a set window.
A loss occurs
An employee starts diverting funds, or a fraudulent instruction is sent.
Occurrence
Time passes
Some losses sit undetected for months before anyone notices.
Gap
Loss is discovered
Someone sees the discrepancy and the clock on notice starts.
Discovery
Notice and proof
You report to the insurer and later file proof of loss, within the policy’s time limits.
Report
Recovery
The insurer pays covered loss after the retention, and may pursue the wrongdoer.
Payment
Rule of thumb
Ask which basis your policy uses, then ask what happens to a loss found after the policy ends or after you switch carriers.
Discovery period
After a discovery-basis policy ends, many forms allow a limited window to discover and report losses that happened while it was in force. Check the length and whether it is automatic.
Why it matters: it is the safety net if you change carriers or let the policy lapse.
Retroactive date and prior acts
A loss-sustained policy may only cover acts after a retroactive date. Moving to a new carrier can create a gap unless prior acts coverage is arranged.
Why it matters: a new policy that starts fresh can leave older, undiscovered thefts uncovered.
Limits and retention
Each insuring agreement has its own limit and retention, and some share an aggregate. Understand whether the limits sit on top of each other or inside one cap.
Why it matters: the largest realistic loss, not the cheapest premium, should guide the limit.
Who counts as an employee
The definition may cover volunteers, interns, contractors, temporary staff and leased workers, or only payroll employees.
Why it matters: a gap here can hollow out the employee theft agreement.
Claim outcomes
What decides whether a claim is paid?
Short answer: the policy wording around five things decides most crime claims: the social engineering sublimit, verification conditions, who counts as an employee, the trigger, and digital asset exclusions. Weakness in any one can sink a claim that feels obvious to the company.
The social engineering sublimit, and whether it matches the size of a realistic wire.
Verification conditions, such as a required call-back to confirm payment changes.
Who counts as an employee, including contractors and interns.
Whether the policy responds when the loss is discovered or when it occurred.
Crypto and digital assets, which most standard crime forms exclude.
Beyond the wording, claims are also shaped by notice and proof. Insurers usually expect prompt notice, preserved records and cooperation with any investigation. Exclusions, such as for losses an insured knew about, apply even to genuine fraud. Our blog guide on crime and fidelity insurance, and the social engineering sublimit that decides your claim goes deeper on the sublimit question.
Ask for these
Which enhancements are worth asking for?
Two crime policies with the same headline limit can respond very differently. These are the features we raise most often, in plain terms. Availability depends on the carrier and the form.
A meaningful social engineering limit
Ask for a sublimit sized to your largest realistic payment, not a token amount.
Why it matters: this is where most real losses for technology companies land.
Reasonable verification wording
Ask that conditions describe a practical call-back step and apply only to the payment at issue, not to every transaction.
Why it matters: overly strict conditions let an insurer deny a claim on a technicality.
A broad definition of employee
Ask to include contractors, temporary and leased workers, interns, volunteers and, where suitable, officers.
Why it matters: it closes the gap between your org chart and the policy.
Clients and third-party property
Ask for cover for property you hold for others, with the right loss payee if a contract requires it.
Why it matters: counterparties often expect it and a missing agreement can delay a deal.
Funds transfer and computer fraud with modern wording
Ask that the form names current payment rails and does not depend on outdated assumptions about how money moves.
Why it matters: old wording leaves modern payment flows in doubt.
Extended discovery period
Ask for a discovery period that is automatic and long enough to find slow-moving losses.
Why it matters: it protects you if you change carriers or the policy is not renewed.
Digital assets and custody
Can crime coverage protect a company that holds crypto?
Short answer: this is one of the hardest placements in the market. Most carriers exclude cryptocurrency entirely. Placements for exchanges and custodians have gone through direct Bermuda and Lloyd’s relationships, and we have placed crime and specie coverage for exchanges and custodians that way. Whether any given company qualifies depends on its structure and controls.
Why do standard forms exclude it?
Digital assets can move instantly and irreversibly, ownership is tied to keys rather than records, and carriers have limited loss history. Standard forms were written before these assets existed.
Why it matters: assuming a normal crime policy covers a wallet is a common and expensive mistake. See digital asset insurance.
What does custody change?
Who holds the keys, whether storage is hot, warm or cold, whether a third party custodian is used and how access is controlled all shape what an underwriter will consider.
Why it matters: a company that holds assets for others carries a different duty from one holding its own treasury.
Who underwrites it?
Specialist markets. These are often in Bermuda and Lloyd’s, and some accept the risk only with strong key management, multi-party approval and independent audit of controls.
Why it matters: be ready to explain your custody setup in detail. Our digital assets page covers the broader program.
Rule of thumb
If your balance sheet holds digital assets, ask early whether crime, specie or a dedicated digital asset policy fits. Do not assume a standard form reaches them.
When things change
How does crime coverage change as you grow or change?
Crime exposure follows the money, so changes in how you move or hold money should prompt a review. This is how common events usually play out, although every policy is different.
What changes
What usually happens
What to do
Acquiring a company
The acquired entity may not be an insured automatically.
Ask about newly acquired entity cover and how long it lasts.
Switching carriers or brokers
A loss-sustained form may leave a gap for earlier acts.
Arrange a discovery period or prior acts cover so nothing falls between policies.
Starting to hold client or customer money
You may need third-party property cover and a higher limit.
Add the agreement and review contracts for required terms.
What happenedA growing software company paid a regular supplier by wire. An email that looked like it came from the supplier asked the finance team to use new bank details, and the payment was sent. The real supplier asked about the missing payment a week later.
The claimA social engineering loss, involving impersonation of a vendor.
What respondedCoverage turned on whether the policy had social engineering cover, the size of its sublimit and whether a call-back to a known number had been made before the change.
Scenario 02
The quiet skim
What happenedA part-time bookkeeper at a small company had access to the payment system. Over many months, small amounts were diverted to an account the bookkeeper controlled, and the pattern surfaced during an audit.
The claimAn employee theft loss discovered well after it began.
What respondedThe employee theft agreement was the key piece, along with the definition of employee, the trigger basis and the time allowed to report.
Scenario 03
The compromised portal
What happenedAn attacker used stolen credentials to log into a company’s online banking portal and sent payments to outside accounts. Staff learned of it from an alert from the bank.
The claimA funds transfer fraud and computer fraud loss with no employee involved.
What respondedWhether the policy responded depended on funds transfer and computer fraud wording and on whether the access was unauthorized.
Scenario 04
The executive impersonation
What happenedA new finance employee received a message that appeared to come from the CEO, asking for an urgent payment to a new account. The employee, wanting to be helpful, sent it before checking.
The claimA social engineering loss involving impersonation of an executive.
What respondedCoverage depended on whether impersonating an executive was named, and whether verification conditions had been met.
Scenario 05
The custody gap
What happenedA digital asset company assumed its crime policy covered assets held in company wallets. After a theft involving access keys, it learned the standard form excluded cryptocurrency.
The claimA digital asset theft under a form with a crypto exclusion.
What respondedNothing responded under the crime form. A specialist digital asset or specie policy would have been needed in advance.
Scenarios are hypothetical illustrations of common claim patterns, not specific Alton Risk clients. Outcomes depend on the policy wording and facts.
Pricing
What drives the cost of crime insurance?
Short answer: premium follows the amount of money you can lose and how well you control it. Two companies with the same headcount can price very differently depending on payment volume, controls and loss history. We do not publish a typical price range for this coverage because it varies widely by limit, industry and control environment.
Factor
How it affects price
What you can do
Limits and sublimits
Higher limits and a larger social engineering sublimit cost more.
Size the limit to your realistic worst loss rather than a round number.
Retention
A higher retention lowers premium but leaves you funding smaller losses.
Choose a retention your finance team can absorb without disruption.
Payment volume and flow
More and larger payments, and more people with authority, raise risk.
Limit who can release funds and set clear thresholds.
Controls
Dual approval, call-back verification and separation of duties often improve terms.
Document the controls and be ready to show them.
Loss history
Prior thefts or fraud losses affect appetite and price.
Prepare loss runs and an honest description of what changed afterward.
Price is not the only comparison. Two quotes at the same premium can have very different sublimits, conditions and trigger bases, so read them side by side before choosing.
Getting covered
How to get a crime quote fast
Short answer: straightforward companies can often be quoted quickly, and complex ones take longer. Having your controls and payment information ready is the biggest thing you control.
What to have ready
Your legal entities and any subsidiaries that handle money.
A description of how payments are made, who can approve them and any thresholds.
Your verification process for new vendors and payment-detail changes.
The number of employees, contractors and temporary workers with access to funds.
Any client, customer or fund money you hold, and in what form.
Prior crime losses and your current policy, with loss runs where you have them.
For digital asset companies, a description of custody, key management and audit of controls.
What delays a quote most often?
Vague answers about payment approvals, missing entity information and an undisclosed past loss.
Why it matters: underwriters ask the same control questions every time, and a clear answer saves days.
What mistakes cost companies the most?
Accepting a token social engineering sublimit, never testing the verification process, and assuming the cyber policy covers wire fraud.
Why it matters: a cheap policy that does not respond is the most expensive one.
From the carrier’s side of the table
What underwriters ask about your controls
Having underwritten these risks on the carrier side, we know a crime submission is won or lost on how clearly it shows control. Underwriters are not asking whether you have ever been targeted. They are asking how hard it would be to succeed against you.
Dual approval for payments, meaning no single person can create and release a payment above a threshold.
Call-back verification of new vendors and any change to bank details, using a known phone number rather than the one in the request.
Segregation of duties, so the person who reconciles accounts is not the person who moves the money.
Access controls on banking portals, including multi-factor authentication and user limits.
Employee screening and training, including awareness of impersonation and phishing.
Regular reconciliation and audit, so a diversion is spotted quickly.
For digital asset companies, key management, multi-party approval, custody arrangements and independent review of controls.
Self-audit
Seven questions to ask about your current crime policy
Does the policy include social engineering cover, and is the sublimit realistic against your largest payment?
What verification conditions apply, and does your team actually follow them?
Does the definition of employee include contractors, temporary staff and interns?
Is the policy written on a discovery or loss-sustained basis, and is there an automatic discovery period?
Does it cover property you hold for clients or third parties, if your contracts require it?
Are cryptocurrency and other digital assets covered, excluded or handled elsewhere?
If you administer a retirement plan, is the required fidelity bond in place?
If you can’t answer yes to all seven, send us your policy and we will review it line by line.
Crime insurance covers direct financial loss from employee theft, embezzlement, forgery, social engineering fraud, and unauthorized funds transfers. Fidelity bonds specifically protect against dishonest acts by employees. It is distinct from cyber insurance, which covers data and network events.
Does crime insurance cover social engineering and wire fraud?
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Many base crime policies exclude or sublimit social engineering, where an employee is tricked into wiring funds to a fraudster. We make sure social engineering and funds-transfer fraud are covered at meaningful limits, not buried in a token sublimit.
Can crime coverage protect a company that holds crypto?
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This is one of the hardest placements in the market. Most carriers exclude cryptocurrency entirely. We have placed crime and specie coverage for exchanges and custodians through our direct Bermuda and Lloyd's relationships.
Who needs crime and fidelity coverage?
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Any company that handles money, processes payments, or holds client funds or assets. Exposure rises sharply with headcount, vendor payment volume, and digital asset holdings.
What is the difference between a fidelity bond and crime insurance?
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A fidelity bond is the older name for employee dishonesty coverage. Most companies now buy a commercial crime policy that includes it, along with forgery, funds transfer fraud and other agreements. Some bonds are required by law or contract, so a general policy may not always satisfy them.
Is employee theft covered if the employee is a contractor?
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It depends on how the policy defines an employee. Many forms cover only payroll staff unless extended by endorsement. Ask for contractors, temporary and leased workers and interns to be named.
What is social engineering fraud?
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Social engineering fraud is when someone deceives your employee, often by impersonating a vendor, executive or client, into voluntarily sending money or changing payment details. It differs from hacking because the employee approves the payment.
Why is the social engineering sublimit so important?
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It is a cap inside the policy limit, and it is often far lower than the headline figure. If the sublimit is smaller than a realistic wire, the policy can leave most of the loss with you.
What are verification conditions in a crime policy?
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They are requirements, such as a call-back to a known number or a second approver, that must be met before a social engineering loss is covered. If the condition was not met, the insurer may deny a claim even for a genuine fraud.
What is the difference between discovery and loss-sustained policies?
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A discovery policy responds to losses discovered during the policy period. A loss-sustained policy responds to losses that happened during the period, even if found later. The difference matters when you change carriers or find a slow-moving loss.
Does crime insurance cover a hacker draining my bank account?
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Often, through funds transfer fraud or computer fraud wording, if the access was unauthorized. Whether it responds depends on the specific policy language, so confirm how your form treats account takeover.
Does cyber insurance cover wire fraud?
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Sometimes, but usually only as a small sublimit or with conditions such as a network event. Cyber and crime are built for different losses, so ask both carriers how they would respond to the same scenario.
Do I need a fidelity bond for my 401(k) plan?
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ERISA generally requires a fidelity bond for people who handle retirement plan funds. The amount and rules depend on your plan, so confirm with your plan advisor or counsel. A general crime policy may not satisfy the requirement.
Does crime insurance cover client or customer money?
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Only if the form includes client or third-party property cover, which is available on some forms but not all. If you hold funds or assets for others, ask for it explicitly.
Can I get crime coverage for digital assets?
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It is difficult. Most standard forms exclude cryptocurrency, so placements are usually specialist and handled through markets such as Bermuda and Lloyd’s. Coverage depends on custody, key management and controls.
What controls do underwriters want to see?
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Common ones are dual approval for payments, call-back verification of new vendors and bank detail changes, separation of duties, access controls on banking portals and regular reconciliation. Documented, enforced controls often improve terms.
How quickly should I report a suspected loss?
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As soon as you discover it. Most policies require prompt notice and preserved records, and delay can create a problem even for a valid claim. Check the notice section of your policy.
Does crime insurance cover losses from a former employee found after they leave?
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It can, depending on the trigger and the discovery period. The key questions are when the loss occurred, when it was discovered and whether the policy was in force at the right time.
Find out whether your crime policy would actually respond
Most companies never read their crime policy until the day a wire goes wrong. We review your current policy against how your team really moves money, then tell you plainly what we would change, including the social engineering sublimit and the verification wording.
Written by Sophia Zaller of Alton Risk. Before founding Alton Risk, Sophia spent four and a half years as a carrier-side underwriter, building specialty programs for digital asset, AI and emerging technology companies.
A line-by-line read of your current policy
Sublimits benchmarked against your real payment sizes
Does crime insurance cover social engineering and wire fraud?
Short answer: only if the policy includes social engineering coverage, and often with a sublimit far below the policy limit and conditions you must meet. Many base crime policies exclude it or cap it at a token amount, so the sublimit and the verification wording usually decide the outcome. See the social engineering fraud and business email compromise glossary entries for background.
Is the sublimit realistic?
Compare the social engineering sublimit with the largest payment your company actually sends in a day, not with your headline limit. A sublimit is a cap inside the policy limit, not on top of it.
Why it matters: a policy that looks generous but pays a small fraction of a typical wire is the most common disappointment.
What verification is required?
Many forms require that the employee verified the payment change through a documented call-back to a known number before sending funds. Others require written procedures or a second approver.
Why it matters: if the condition was not met, the insurer may deny the claim even though the fraud is real.
Write down your payment verification steps first, then ask whether the policy’s condition matches what your team really does on a busy Friday.