Crime and fidelity insurance

Crime insurance, sometimes called fidelity coverage, is for money and property stolen from the business. That can include theft by an employee, a hacked transfer, or a payment sent to a fraudster.

It matters most where money moves: management company accounts, fund assets, and client relationships at an investment firm, or payment approvals and vendor details at a startup. Cilantro Risk arranges crime coverage built around how your payments work.

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Whose money is covered

A policy covers the property of the entities it names. If you’re also responsible for money that belongs to funds or clients, the policy has to say so.

Who counts as an employee matters too. Theft by an employee and fraud by an outsider fall under different parts of the policy, and contractors or outsourced administrators may not be treated as employees unless the policy includes them. We check both against the way your firm is set up.

How a payment can go wrong

Policies usually separate three scenarios. Computer fraud is someone breaking in and moving money. Funds transfer fraud is someone sending fraudulent instructions to your bank. Social engineering is an employee being tricked into sending the money themselves. That last one often has the smallest limit and may require that the instructions were verified first.

We walk through how a payment happens at your firm, from request to release, and match it to the policy:

Whose account or property is at risk
Whether the policy covers a transfer an employee approved after being deceived
Who counts as an employee
The proof and notice the insurer needs after a loss

Crime and cyber, working together

One incident can produce two losses: the cost of investigating a break-in, and the money that was stolen. Buying both policies doesn’t guarantee there’s no gap between them.

We read the two side by side and tell you which would respond to each loss. Coverage with the same name can be defined differently by different insurers, so we go by the clause and not the label.

If you sponsor a benefit plan

If your firm sponsors an employee benefit plan, you’ll come across the ERISA fidelity bond. The bond protects the plan against fraud or dishonesty by the people who handle its money. Fiduciary liability insurance covers claims that the people running the plan breached their duties. One doesn’t stand in for the other, and we can help with both.

To get started, send us your current crime policy and any plan bond, and tell us how payments are approved.

Common questions

Is social engineering fraud included in crime insurance?

Not always. It is often added by endorsement, with a smaller limit than the rest of the policy. We check the limit and any conditions about verifying payment instructions.

Does crime insurance cover client or fund assets?

Only if the policy extends to them. It depends on which entities are insured, what property is covered, and your responsibility for property that belongs to others.

Is a fidelity bond the same as fiduciary liability insurance?

No. An ERISA fidelity bond protects a benefit plan against fraud or dishonesty. Fiduciary liability insurance covers claims that the plan’s fiduciaries breached their duties.

Talk to us about your insurance

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