Commercial crime insurance is an important part of any company’s insurance plan, because it helps to protect you against severe financial losses in case your business becomes the victim of a crime. But this type of coverage isn’t just designed to help keep your company’s assets safe–it also helps to protect your clients.
Businesses at Risk
There are many businesses that may temporarily acquire the assets of their customers. These include repair companies such as auto body shops, as well as storage facilities. Banks, rental establishments, shipping companies, and even pet-sitting facilities may all be responsible at one point or another for the property of their clients.
In the event of a crime, such as a robbery, burglary, or even fraud, these assets may become lost, damaged, or stolen–and the company may be held liable. Commercial crime insurance can help pay for the repair or replacement costs of client assets and possessions, in addition to any of the company’s assets that were damaged or stolen during the crime.
Even companies that do not take hold of customers’ assets can be vulnerable, since most businesses gather information on their clients such as name, contact info, and payment information. If this data is stolen in a cyber breach, the company may be required to reimburse customers.
Whether dealing with physical property or digital information, the customers of a business are just as vulnerable as the company itself. Commercial crime insurance is absolutely integral to any company’s insurance plan.