Insurance Terms - Commercial Crime Bond
DISCLAIMER -
The abbreviated outlines of coverage provided in this site are not intended to
express any legal opinion as to the nature of insurance coverage. The terms
shown on this site provide only the most basic and general description of some
common terms used by the insurance industry. Please read your policy for
specific details of your coverage. ONLY your policy provides coverage.
Employee Dishonesty
Employee dishonesty is considered to be a criminal act committed by an employee
acting alone or in collusion with others. There must be intent by the employee
to cause the employer a loss and to obtain a financial benefit for the employee
or someone else.
Coverage is provided for dishonest acts of employees of the named insured only.
Coverage insures against loss of money, securities, and property other than
money and securities. The blanket form provides coverage for dishonest acts of
all employees. The limit for blanket coverage applies per loss, regardless of how
many employees are involved. The scheduled form provides coverage only for the
dishonest acts of employees specifically listed in the policy. On the scheduled
form, a separate limit applies to each employee listed on the schedule.
ERISA Employee
Retirement Income Security Act
The Employee Retirement
Income Security Act of 1974 (ERISA) is a federal law that sets minimum
standards for most voluntarily established pension and health plans in private
industry to provide protection for individuals in these plans. This bond must
be for a limit of no less than 10% of the funds balance.
In general, ERISA does not
cover group health plans established or maintained by governmental entities,
churches for their employees, or plans which are maintained solely to comply
with applicable workers compensation, unemployment, or disability laws. ERISA
also does not cover plans maintained outside the
Forgery or Alteration
Forgery is generating a document or signature that is not genuine. Alteration
is changing a document in a manner that is neither authorized nor intended. This
form insures against loss caused by the forgery or alteration of a covered item
drawn against the insured's accounts. A covered item might be a check, draft,
promissory note, bill of exchange or similar instrument.
Theft, Disappearance and Destruction
Theft means any act of stealing. Disappearance is unknown causes of loss.
Disappearance lacks the elements of knowing if the crime was a theft, burglary
or robbery. Destruction is the loss of certain property; it is usually the
result of another cause of loss. Section (1) of the form covers money and
securities against loss by theft, disappearance, or destruction inside the
premises. Section (2) covers money and securities outside the premises in the
care and custody of a messenger.
Robbery and Safe Burglary
Robbery is the taking of property from a person by the threat of personal
injury to that person. Safe Burglary is a specific kind of burglary that means
the taking of property from a safe or vault which shows visible signs of
forcible entry.
This form covers property other than money and securities inside and outside
the premises. Property other than money and securities is covered while outside
the premises and only in the care and custody of a messenger. Coverage inside
the premises is for loss or damage resulting from robbery of a custodian or
from safe burglary. A custodian is the named insured or a partner or employee
of the insured.
Premises Burglary
Premises Burglary covers property other than money and securities inside the
premises. It also covers damage to the insured's premises resulting from a
covered cause of loss.
Computer Fraud
Computer fraud is a specialized kind of theft where a computer is used to steal
property from its rightful owner. This form covers money and securities and
property other than money and securities.
Extortion
Extortion is the surrender of property away from the premises as a result of a
threat of bodily harm to someone who is, or allegedly is, being held captive.
This form covers money and
securities and property other than money and securities.
Premises Theft & Robbery Outside
Section (1) covers property other than money and securities inside the premises
for loss caused by actual or attempted theft. Section (2) Robbery Outside the
premises covers property other than money and securities while it is in the
care and custody of a messenger.