In 2001, the “McDonald’s Monopoly Fraud” case garnered media attention when a criminal conspiracy defrauded McDonald’s Corporation’s Monopoly promotional game. A security officer who oversaw the printing of the winning game pieces conspired with a group of acquaintances to steal valuable game pieces and redeem high-value prizes like cars and cash.
The scheme went undetected for several years, netting a total of more than $24 million in cash and prizes. McDonald’s did significant reputational repair work, announcing a special giveaway to make up for its customers’ lost chance to win the fraudulent game.
McDonald’s severed ties with its marketing partner responsible for the logistics of the game, which closed its doors shortly after.
Crime insurance protects your business and your partners from losses resulting from criminal acts like employee fraud. Who needs crime insurance and what does it cover?
In this guide, we’ll explore:
Commercial crime insurance provides financial protection from losses resulting from criminal acts such as theft, fraud, and embezzlement.
Crime insurance covers a broad range of crime-related losses, like:
There are a few things typically excluded from a crime insurance policy, including:
What is and isn’t covered can vary, so it’s important to be familiar with your specific policy details. At POWERS, we go through a thorough assessment with all clients to ensure the policies they buy fit the risk they face.
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Crime insurance and cyber insurance cover different types of risk. Crime coverage focuses on traditional criminal acts like theft, embezzlement, and fraud. In contrast, cyber insurance specifically addresses cyber incidents like data breaches and cyberattacks.
Crime insurance and fidelity bonds both protect against employee dishonesty and fraud, but there are key differences between the two. A crime policy provides broad protection against criminal acts committed by employees or third parties.
Fidelity bonds, also called honesty bonds, are insurance policies that specifically cover losses from employee dishonesty or fraud. They’re often required in industries like finance and healthcare and are designated as either first-party (covering acts committed by employees) or third-party (covering acts committed by contractors).
Businesses of all sizes and industries can be financially impacted by crime. Any organization that handles cash, valuable assets, or sensitive information — or relies on the trustworthiness of its employees — can benefit from a commercial crime policy.
We recommend crime policies for our clients in:
Your crime insurance premiums are based on several factors, such as:
Because insurance rates can vary, it’s important to work with a risk manager to find the best solution. Businesses with complex risk profiles will find the most value from partnering with an independent insurance agent that will help them proactively manage risk for long-term success.
Safety and security measures can show your insurance carrier that you’re committed to reducing your risk. Robust security protocols like surveillance systems, access controls, employee background checks, and regular audits can reduce your risk of incidents and help reduce your premiums over time.
An experienced agent should recommend insurance policies for you based on your business’s unique exposures and risk profile. If your agent hasn’t recommended crime insurance but you think it could be a good fit, ask about it.
Your agent will find the best options based on your risk assessment and present them to you. At POWERS, we cover the following questions when presenting clients with coverage options:
At POWERS, we work with some of the best business insurance carriers in the U.S. There’s no need to spend hours researching providers – we’ll make recommendations tailored to your business.
I truly believe these guys are looking out for your best interest and have complete faith and trust in the care they put into what they do for you, researching rates, getting the best coverage for you.
Kraig H. (current client)
If you need to file a crime insurance claim, don’t panic. Thousands of claims are filed every day.
The claim process is different for every carrier and agency, so we recommend learning your insurance agent’s process before you need to file a claim. That way, you’re prepared when the time comes.
Here’s the claim process for POWERS clients:
During this process, your POWERS claims consultant will be with you every step of the way.
Most businesses need commercial crime coverage, but how can you make sure you get the right coverage and the most value from your policy? Who will guide you through the claims process when an incident happens?
Any agent can write you a policy. But you don’t need any agent – you need a business partner with proven risk control expertise.
At POWERS, we spent more than 30 years developing what we call “the POWERS Process.” We use this five-step framework to get a deep understanding of your business and make recommendations that not only give you the right insurance coverage but also help you make smart decisions to grow your business.
[POWERS Process graphic]
We know from decades of experience that a one-size-fits-all approach to risk management simply doesn’t work. We’ll take you through a series of discussion points to drill down and uncover exposures you’ve never considered. Then, we’ll build a plan to safeguard your business and look toward the future.
| Anonymous Agency | POWERS |
| Insurance as a stand-alone product | Insurance integrated into your customized risk management plan |
| Multiple, run-of-the-mill applications to assess your risk | Customized, proprietary assessment for a deep understanding of your risk |
| Focused on up-front cost savings | Focused on long-term cost control |
| Salespeople who write your policy and ghost you until renewal | Partners who help you make smart, growth-focused business decisions |
| Say they care about your business’s success | Show you we care by setting your risk management plan in motion |