Crime and Fiduciary Liability Coverage

Crime insurance is designed to protect an organisation from losses due to either employee dishonesty or third party fraud.  Having a fiduciary liability component will also ensure that any ERISA employee dishonesty or mismanagement replaced to employee retirement or health plans is also covered.  

Regardless of the protections you take with your hiring process, including background checks, and maintaining strong, enforceable internal controls, the typical organisation, including nonprofits, loses 5% of its revenues to fraud each year, according to the Association of Certified Fraud Examiners 2012 report.  The types of fraud can range broadly from employee theft, expense report fraud, forgery, funds transfer fraud, to identity theft.  Technical advances have often left businesses exposed to fraud as the “human touch” is minimised.

Fiduciary claims may result even if the intent of employees were honorable.  Anyone involved in a retirement or health plan can be held personally liable with their assets at risks if they were known to violate any ERISA violations or if it is deemed they did not:

  • Act in the best interests of plan participants in the managing of these benefits
  • Exhibit a “duty of care” that an average person could be expected to exhibit with such responsibilities
  • Diversify plan assets
  • Follow plan guidelines

Because of the question of intent, defending these claims can be very costly, even if they are without merit.  Many organisations think their investment firms or third-party administrators hold the responsibility for these plans but that is not the case.

Clements coverage provides protection worldwide and can include a broad definition of “employee”, including consultants, temporary or seasonal employees, non-compensated officers, interns and outside council.      

Ensure that you have the appropriate coverage and policy limits to meet the needs of your organisation.  Call us today at +44(0) 33 0099 0103 or email enquiries@clements.com to discuss how we can tailor your policy to meet the size and scope of your unique situation.

Contact Clements Insurance Specialist

  • Benefits & Features
  • Resources

Benefits and Features

Clements Crime and Fiduciary Liability Insurance is underwritten by certain underwriters, including Lloyd's of London and others, and coverage includes:

  • Lost funds: One of the most typical acts of fraud experience by organisations of all types and sizes is stealing of funds.  This might occur by stealing customer payments, check or funds transfer fraud, misuse of company credit cards or other types of forgery.  Your Clements policy can reimburse you for these funds. 
  • Replacement cost valuation for loss of inventory or property:  Stolen inventory may include items stolen from a warehouse to sell via back channels or theft of other employee property including computers, office supplies, or even component parts.  Clements will reimburse you for the replacement cost valuation for this loss of property.
  • Damages for lost income or other plan benefits as a result to changes made in benefit packages, including any personal liability awards.    
  • The cost for defending a claim in a fiduciary case. 

Ensure that you have the appropriate coverage and policy limits to meet the needs of your organisation.  Call us today at +44(0) 33 0099 0103 or email enquiries@clements.com to discuss how we can tailor your policy to meet the size and scope of your unique situation.

Contact Clements Insurance Specialist