Crime insurance: define the property, actor and fraud method

Use dotted terms for definitions. You can also browse the glossary.

Before you decide

Different insuring agreements address different events.
Property owned by clients can raise separate definitions.
Payment controls remain essential.

Map the money and authority

List who receives rent, holds client funds, approves payments and reconciles accounts. Identify employees, managers, vendors and outside actors. Travelers describes multiple fidelity/crime insuring agreements rather than one universal theft benefit.

Ask about employee definitions, client property, discovery or loss timing, reporting duties and applicable retentions. Ordinary building theft and a fraudulent bank transfer should not be treated as the same event.

Compare event definitions

Ask for the relevant agreement
Event	Review
Employee takes business money	Employee theft and covered property
Client funds disappear	Ownership/custody and client coverage
Unauthorized electronic transfer	Funds transfer/computer fraud definitions
Deceptive authorized payment	Social-engineering wording and controls
Forged document	Forgery agreement and exclusions

Test a payment-change request

An apparent vendor requests new bank details. FBI guidance supports independent verification and immediate bank contact when fraud is suspected. Use a known or independently obtained contact, not the number inside the suspect message.

Ask the partner to apply that event to the actual crime and cyber proposals. Confirm whether limits are separate, shared or excluded, and keep approval records securely.

Sources & scope

Travelers: Fidelity and crime insurance
Examples of distinct insuring agreements for dishonesty and fraud. Definitions and reporting triggers vary.
Federal Bureau of Investigation: Business email compromise
Payment verification and incident-response guidance; not a statement that insurance reimburses a fraudulent transfer.
Federal Trade Commission: Cyber insurance
First-party and third-party cyber questions; a checklist is not proof that a quoted policy includes each item.

Sources checked October 24, 2026. General descriptions do not replace the policy, endorsements, declarations or an insurer’s coverage determination. Examples are hypothetical unless explicitly identified otherwise.

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