Crime &
Employee Fidelity

Crime and employee fidelity insurance is a crucial shield for businesses, mitigating the risks of direct losses arising from theft and certain types of fraud. Often overlooked, this insurance is essential because typical commercial insurance policies do not cover crime-related losses. Safeguarding your business with this insurance is paramount.

Fraud isn’t just a one-time occurrence; companies can face repeated assaults from both internal and external sources. That’s why protecting your business is vital.

Who Needs Financial Crime Insurance?

Financial crime insurance is indispensable for businesses of all sizes, from Small and Medium-sized Enterprise (SMEs), which may lack the security measures of larger firms, to major financial institutions.

Fidelity Insurance (Internal Financial Crime/Fraud)

At Cox Mahon, we offer comprehensive insurance protection against criminal acts committed by dishonest employees, whether they act alone or collude with third parties.

Sadly, throughout the history of commerce, employees and directors have stolen and committed fraud against their employers. While it’s only a minority who engage in such behaviour, there are numerous reasons why they may do so.

Financial pressures, personal crises such as impending redundancy or retirement, divorce, simple debt, or even management resentment are common triggers. Regrettably, addiction to substances like gambling, drugs or alcohol can also lead to such actions, especially during economic downturns.

Alarmingly, trusted senior staff members may possess the knowledge to circumvent security measures and establish covert fraud systems. This pattern often spans years and may involve collusion with external parties like suppliers.

Theft of stock or contents typically falls outside the cover of standard business theft insurance policies. Therefore, fidelity/internal crime insurance becomes necessary, especially when high-value goods like copper (cut-offs or cable) or portable electronic devices are at risk of theft, which could result in significant financial losses for the business.

Commercial Crime (Fraud) Insurance

Crime insurance provides cover against the loss of money, securities, or other assets due to specific types of third-party financial crime, fraud, and social engineering, such as impersonation fraud.

Why You Need Crime (Fraud) Insurance

The Annual Fraud Indicator underscores the staggering cost of fraud to the UK economy, amounting to £219 billion annually. In 2022 alone, various scams, including invoice and mandate scams, CEO scams, impersonation of police/bank staff scams, and other impersonation scams, resulted in substantial financial losses. For example, invoice and mandate scams, where the victim attempts to pay an invoice to a legitimate payee, but the criminal intervenes to convince the victim to redirect the payment to an account they control had a value of £49.5m

Fidelity Insurance – What Does a Policy Cover?

• A crime and employee fidelity policy provides an indemnity in respect of any loss sustained as a direct result of a crime.
• Theft of money, securities, or property belonging to an insured organization.
• Theft of money, securities, or property belonging to a client of an insured organization.
• Expenses arising from crime. Protect your business against financial crime and fraud with our comprehensive insurance solutions tailored to your needs.