Crime Insurance for California Businesses.

Historically, fidelity bonds covered employee dishonesty for specific employees with notice to the surety. Modern crime insurance covers all employees automatically without per-person scheduling, plus additional crime exposures (forgery, computer fraud, funds transfer fraud, etc.). Crime insurance is broader and more practical for most California businesses; fidelity bonds remain useful for specific situations (some financial services, certain government contracts requiring named-employee bonds).

Yes — most crime policies include 'money and securities' coverage that extends to funds in transit between locations, deposits being delivered to the bank, and cash held off-premises by authorized employees. Sublimits typically apply ($10K-$50K depending on policy). Operations with significant cash handling or armored car transit should confirm limits match realistic exposure.

Computer fraud covers theft of money or property through computer-based methods — fraudulent wire transfers initiated by hacking, fund transfers to unauthorized parties, and similar electronic theft. It overlaps with cyber but addresses the financial-loss aspect specifically. Modern crime policies include computer fraud at meaningful limits ($100K-$500K), and we coordinate it with cyber coverage to confirm no gaps.

FTF is fraud arising when criminals impersonate authorized parties to direct wire transfers — typically by social engineering or compromised email. Coverage for FTF has tightened across the industry due to claim frequency. Some crime policies cover FTF only with specific verification procedures (callback to a known number, dual approval requirements). We confirm FTF coverage is in place and clients understand the verification requirements that maintain coverage.

Generally no — crime coverage applies to losses involving acts committed during the policy period (subject to retroactive provisions for prior acts at the same employer). An employee who stole from a previous employer isn't covered, but ongoing employees who continue or escalate prior theft are. We address employee history during underwriting where relevant.

Yes, often more so. Small operations typically have less financial controls separation, more individual authority over financial transactions, and longer detection times because fewer eyes review the records. The exposure per employee is often higher in small businesses, not lower. Crime coverage premium for small operations is correspondingly affordable ($800-$1,500 for 1-5 employees).

Most crime policies cover 'property of others in your care, custody, or control' — including patient funds at healthcare operations, client trust accounts at legal/financial services, and similar fiduciary arrangements. Coverage is critical for operations with significant client financial exposure. We confirm policy terms cover client property explicitly, not just first-party losses.

Standard exclusions: acts by the named insured (typically the owner — the policy doesn't cover the owner stealing from themselves), claims involving inventory shrinkage (which is excluded from coverage), claims involving consequential damages (lost profits from theft, not just the theft itself), and acts discovered after extended periods (subject to retroactive provisions). We help clients understand these exclusions and structure coverage that addresses realistic exposures.