Importance of Commercial Crime Insurance
The Importance of Commercial
Crime Insurance
Executive Summary
The current economic pressures that society faces has resulted in a steady increase in commercial crime. Internal theft, deception and fraud are just some of the examples that can and have damaged many businesses reputations. In light of the recent scandals that have taken place, such as Enron and WorldCom, companies must now consider crime insurance as a vital survival tool.
Recent reports state that nearly one in three organizations around the world were victims of economic crime during the past year. In Canada alone it is reported that employees steal approximately $20 billion in money, securities, stock and other properties annually. Businesses must be aware of these facts. They should implement plans before it is too late and before there are destructive losses.
Improvements in technology have opened up more doors for criminals to infiltrate. Private data can be stolen, copied, forged, and manipulated with greater ease through hacking. This poses all sorts of new threats for businesses and makes them more inclined to purchase commercial crime insurance.
As crime insurance is not covered under property insurance, it is critical to obtain in this time of increased crime. A small-to-mid-sized organization pays an average premium of about $1000 for a $100,000 insurance coverage. This is seen as a good deal to most business owners as it brings them peace of mind.
Deception in organizations has been a growing concern in recent years. Everyone knows about the huge scandals that have recently caused Enron and WorldCom to go bankrupt. Corruption in an organization can grow to the point where it brings the whole company down.
Crime cannot be stopped completely, so companies must look at ways to minimize it. As criminals will always aim for the target that has the greatest return with the least amount of effort and risk involved, certain methods must be implemented.
Methods to
Crime Insurance
Executive Summary
The current economic pressures that society faces has resulted in a steady increase in commercial crime. Internal theft, deception and fraud are just some of the examples that can and have damaged many businesses reputations. In light of the recent scandals that have taken place, such as Enron and WorldCom, companies must now consider crime insurance as a vital survival tool.
Recent reports state that nearly one in three organizations around the world were victims of economic crime during the past year. In Canada alone it is reported that employees steal approximately $20 billion in money, securities, stock and other properties annually. Businesses must be aware of these facts. They should implement plans before it is too late and before there are destructive losses.
Improvements in technology have opened up more doors for criminals to infiltrate. Private data can be stolen, copied, forged, and manipulated with greater ease through hacking. This poses all sorts of new threats for businesses and makes them more inclined to purchase commercial crime insurance.
As crime insurance is not covered under property insurance, it is critical to obtain in this time of increased crime. A small-to-mid-sized organization pays an average premium of about $1000 for a $100,000 insurance coverage. This is seen as a good deal to most business owners as it brings them peace of mind.
Deception in organizations has been a growing concern in recent years. Everyone knows about the huge scandals that have recently caused Enron and WorldCom to go bankrupt. Corruption in an organization can grow to the point where it brings the whole company down.
Crime cannot be stopped completely, so companies must look at ways to minimize it. As criminals will always aim for the target that has the greatest return with the least amount of effort and risk involved, certain methods must be implemented.
Methods to
Cited: Acunetix. Webhacking an Underestimated Threat. N.p., n.d. Web. 1 Dec. 2009. Business Crime. “Insurance Claims on the Increase.” Retrieved November 26, 2009. Enron Scandal. “The long, Winding Trial.” Retrieved November 28, 2009. Gutman, Huck. “Enron Scandal.” The long, Winding Trial. 2002. Retrieved November 28, 2009. Handing Fidelity Bond Claims Insure New Media. “When do I need Fidelity Crime Insurance?” Retrieved 1 Dec. 2009.