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