What type of losses does 'crime insurance' cover in commercial properties?

Crime insurance specifically covers losses that arise from criminal acts, such as theft, burglary, and fraud. This type of insurance is designed to protect businesses from financial losses due to the dishonest acts of employees or third parties. Coverage generally includes incidents like employee theft, robbery, and possibly even forgery or alteration of financial documents, which can have a significant financial impact on a commercial property’s operations.

In contrast, other types of losses such as those from natural disasters like floods, property damage from accidents, or liabilities from contracts fall under different insurance policies. For example, property insurance may cover damage from natural disasters, while liability insurance addresses issues that arise from contractual obligations or accidents involving third parties. Thus, crime insurance uniquely focuses on the financial repercussions of criminal activity affecting a business, making it an essential consideration for many commercial operations.