What is High Hazard Crime Insurance?
High hazard crime insurance is a specialized type of commercial crime coverage designed for businesses that face an elevated risk of theft, robbery, burglary, fraud, or employee dishonesty. These risks may be higher because of your industry, location, cash handling, high-value inventory, or the way your operations are set up.
This coverage helps protect your business from financial loss when criminal acts target your money, securities, or property, whether the crime comes from outside criminals or from your own employees.
Who Needs High Hazard Crime Insurance?
Any business can experience crime losses, but some are considered higher hazard because of the nature of their work or where they operate. High hazard crime insurance can be especially important for:
- Retail stores and convenience stores with frequent cash transactions
- Jewelry, electronics, firearms, and other high-value goods dealers
- Bars, restaurants, and nightlife venues
- Financial services, check cashing, and money transfer businesses
- Construction sites and contractors with valuable tools or materials on-site
- Businesses in areas with higher crime rates or limited security
If your business handles a lot of cash, stores expensive inventory, operates late at night, or has many employees with access to money or inventory, high hazard crime insurance may be worth considering.
What High Hazard Crime Insurance Typically Covers
Exact coverage varies by policy and insurer, but high hazard crime insurance commonly includes protection for:
- Employee theft and dishonesty – Losses caused by employees stealing money, securities, or property.
- Robbery and burglary – Theft involving force, threat, or unlawful entry into your premises.
- Inside and outside the premises – Covered losses that occur on your business premises or while property is being transported.
- Forgery or alteration – Losses from forged checks, drafts, or other negotiable instruments.
- Computer fraud and funds transfer fraud – Certain types of fraud involving electronic systems or fraudulent instructions to transfer funds.
- Money and securities – Loss or destruction of cash and negotiable instruments due to covered crime events.
Some policies are written on a package basis, while others allow you to select specific crime coverage parts based on your risk profile.
Common Exclusions and Limitations
High hazard crime insurance does not cover every possible loss. Typical exclusions and limitations may include:
- Losses discovered outside the policy’s discovery or reporting period
- Acts committed by the insured or partners (as opposed to employees)
- Losses due to normal inventory shortages or accounting errors
- Damage to buildings or vehicles that is better addressed under property or auto insurance
- Losses arising from war, governmental actions, or certain cyber events beyond the crime coverage
- Prior known losses or acts that occurred before the policy period, if not disclosed
Policy wording controls what is and is not covered. Review your policy documents and speak with a licensed insurance professional for details about your specific situation.
Factors That Influence the Cost
The cost of high hazard crime insurance depends on several underwriting factors, including:
- Type of business and industry – Some industries have higher expected crime exposure than others.
- Location and crime rate – Businesses in areas with more reported crime may face higher premiums.
- Amount of cash and valuables on hand – Higher limits and more exposure can increase cost.
- Number of employees and turnover – More staff and frequent turnover may increase employee dishonesty risk.
- Security measures – Alarms, cameras, safes, access controls, and cash-handling procedures can help manage risk.
- Claims history – Past crime losses can affect eligibility and pricing.
Insurers also consider the limits you choose, any deductibles, and which crime coverage parts you select.
Proof of Insurance and Compliance
Some landlords, lenders, franchisors, or business partners may require proof of crime insurance, especially for high hazard operations. This proof is usually provided as a certificate of insurance or a copy of your policy declarations.
Crime insurance requirements can vary by contract, industry, and jurisdiction. There is no single national standard, and rules may differ from state to state. Work with your insurance agent or broker to understand what your contracts require and how crime coverage fits alongside your property, general liability, and other policies.
How to Get a High Hazard Crime Insurance Quote
To get a quote for high hazard crime insurance, be prepared to share details about your business operations, locations, security measures, employee roles, and your current insurance program. This information helps the insurer evaluate your risk and suggest coverage options.
To explore coverage options and request a quote for high hazard crime insurance, you can start here: Get a high hazard crime insurance quote.
Frequently Asked Questions
Is high hazard crime insurance the same as general liability insurance?
No. General liability insurance focuses on third-party bodily injury and property damage claims. High hazard crime insurance is designed to help protect your business from financial losses caused by theft, fraud, or dishonesty involving your money, securities, or property.
Does high hazard crime insurance cover theft by my own employees?
Many crime policies include employee theft or employee dishonesty coverage, which can respond to certain losses caused by your own staff. However, coverage depends on the specific policy form, definitions, and exclusions, so you should review your policy documents.
Will this coverage protect cash in transit between locations or to the bank?
Some high hazard crime policies include coverage for money and securities while in transit, subject to policy terms and conditions. Limits, requirements, and exclusions may apply, especially for armored transport or large cash movements.
Do I need crime insurance if I already have property insurance?
Property insurance typically covers losses from events like fire, wind, and certain types of theft, but it may not address employee dishonesty, forgery, or specific crime-related losses. Crime insurance is often used to fill these gaps and provide more focused protection against criminal acts.
How much high hazard crime coverage should my business carry?
The appropriate limit depends on your cash flow, inventory values, number of locations, and risk tolerance. An insurance professional can help you evaluate your exposures and discuss coverage options that align with your operations and contracts.
Still have questions? Talk to a local insurance expert.