The ACORD 45 Crime Application is used to apply for commercial crime insurance — coverage for losses from theft, forgery, fraud, employee dishonesty, robbery, burglary, and other criminal acts. Crime insurance is often overlooked in commercial lines, but for businesses that handle cash, have valuable inventory, or trust employees with financial authority, it can be the most important coverage they have.
Crime insurance is particularly important for: • Businesses with employees who handle cash or checks • Companies that process wire transfers or authorize electronic payments • Retailers with valuable inventory subject to shoplifting or internal theft • Healthcare practices handling patient financial information • Financial services firms • Any business with employees in positions of financial trust
Commercial crime policies typically offer the following coverage forms:
Employee dishonesty — covers losses caused by dishonest acts of employees (theft, embezzlement, fraud)
Forgery and alteration — covers losses from forged checks, drafts, or other instruments
Theft, disappearance, and destruction — covers money and securities stolen, lost, or destroyed
Robbery and safe burglary — covers property stolen by force or from a locked safe
Computer fraud — covers losses from fraudulent computer instructions or unauthorized computer access
Funds transfer fraud — covers losses from fraudulent instructions to transfer funds electronically
Employee dishonesty is the most frequently purchased crime coverage and often the most valuable. It covers theft, forgery, and fraud committed by employees. Losses from employee dishonesty are typically excluded from GL, property, and other commercial lines.
Key underwriting factors for employee dishonesty:
• Does the business conduct background checks on employees in positions of financial trust? • Are financial controls in place (dual signatures, account reconciliation, segregation of duties)? • Has the business ever had an employee dishonesty claim or discovered employee theft? • What is the largest single check or wire transfer amount that one employee can authorize alone?
Like claims-made vs. occurrence, crime policies come in two triggering forms:
Discovery form — covers losses discovered during the policy period, regardless of when they occurred. Preferred by most insureds because prior crimes not yet discovered are covered.
Loss sustained form — covers losses that occurred during the policy period (plus prior policy losses discovered within a specified period after the prior policy ends). More restrictive than discovery form.
Not asking about crime insurance at all — it is often not mentioned by clients unless prompted
Setting limits too low — employee theft schemes often run for years before discovery and total losses can be significant
Forgetting computer fraud coverage in the age of social engineering and business email compromise
Not disclosing prior losses or claims during the application process
Using a loss sustained policy when a discovery form would better protect the client
Send your client a plain-English intake link. When they finish, the completed ACORD 45 and all required companion forms are generated and ready to submit.