Crime insurance is insurance to manage the loss exposures resulting from criminal acts such as robbery, burglary and other forms of theft. It is also called "fidelity insurance". Many businesses purchase crime insurance that allows them to file claims for employee theft or other offenses with the potential to cause financial ruin.
Because crime insurance loss exposures can vary significantly among policyholders and require special underwriting skills, insurers prefer to insure certain types of crime insurance loss under separate Commercial Crime Insurance forms. These forms allow organizations to cover crime losses that are not insured under other insurance policies.
The ISO Commercial Crime Coverage form includes these eight insuring agreements:
Forgery or Alteration
Inside the Premises - theft of money and securities
Inside the Premises - robbery or Safe burglary of other property
Outside the Premises
Funds Transfer Fraud
Money Orders and Counterfeit money
Some organizations buy crime insurance instead of a surety bond.
Anarcho-capitalists favor the use of crime insurance by individuals as well, to cover losses due to murder, rape, and other violent crimes in addition to property crimes; this type of crime insurance is termed aggression insurance.