What is Commercial Crime Policy?

First, it is necessary to know what is a Commercial Crime Policy. It is a different term for Fidelity Bond. Many brokers consider it is also a performance bond but it's not, it's actually a type of insurance policy that defends the company from employees' crime
Based on study performed by the ACFE (Association of Certified Fraud Examiners), U.S. organizations lost approximately seven percent of yearly profits to scam. According to the U.S. GDP in 2008, this number shows an astonishing number of losses of nearly $1 trillion among companies, it continues to increase in spite of higher focus on anti-fraud actions and latest statute law to fight fraud.
The Commercial Crime Policy covers the company from employee crime. Usually, underwriters and security firms are needed to get a Commercial Crime Policy, as it protects employer's financial situation when a bad employee causes damages through negligence or unscrupulous acts. Employee Dishonest Bonds or Fidelity bonds are often needed by private project owners and sometimes required by a few government projects. Its major protection is related to the employee theft. It will pay them for the financial losses, or on other properties directly caused by forgery or theft perpetrated by an employee. There are a few other arrangements that can be included or added in the Fidelity policy in protecting you from bad employees.

• Inside the company - Stolen money, safe burglary,sabotage and equipment thefts
• Outside the company - Equipment thefts and sabotage
• Electronics Frauds

Fiduciary Liability Insurance and Fidelity Bonds

Companies frequently offer workers benefit plans for helping to keep and attract qualified workers. These companies should understand about the liability exposures caused by the handling of this plan.
According to the provisions of the ERISA (Employment Retirement Security Act), the employee fiduciary benefit plan should work properly to profit both beneficiaries and participants.
Under Employment Retirement Security Act, a Fiduciary/Trustee will be held financially responsible for the any Welfare Plan or Retirement Plan in a company
Fiduciary Liability Insurance can help in protecting your personal investments, and offers protection for any legal and financial obligations caused by claims because of the alleged inability to act adequately. Fiduciary Liability Insurance isn't compulsory according to the Employment Retirement Security Act, however all companies that extends any kind of employee benefits plans must have this insurance coverage which is readily accessible.
That is why Fidelity Bond is needed in bad situations.
When unscrupulous trustees or administrators have financially harmed worker benefits plans, the bonds can be used, to benefit everyone including the beneficiaries. The bonding insurance won't shield the administrators themselves from any liability claims and is entirely separated from your fiduciary liability insurance.
Employment Retirement Security Act demands that qualified retirement accounts use a fidelity bond for covering a minimum of ten percent of the overall plan assets value (estimated at the start of the annual plan), with a lowest bond qualification of $1,000 and a upper limit bond qualification of $500,000. The bond must be received from their underwriter, and the requirement isn't waived for any reasons whatsoever. Fidelity Bonds is purchased separately and should be included as the nonobligatory protection to a BOP (Business Owners Policy).