# CommercialCrimePolicy.com, A Surety One, Inc. Platform
Canonical URL: https://commercialcrimepolicy.com/
Publisher: Surety One, Inc. (a Janus Assurance Re property)
Contact: (800) 373-2804 | underwriting@suretyone.com | Fax 919-834-7039 | P.O. Box 37284, Raleigh, NC 27627, T: 919-859-5294; Puerto Rico office 404 Av. de la Constitución, #708, San Juan, PR 00901, T: 787-333-0222
Last updated: 2026-09-01
Author: C. Constantin Poindexter, MA, JD, CPCU, AFSB, ASLI, ARe, AINS, AIS, CPLP, founder of Surety One, Inc. (https://www.linkedin.com/in/constantinpoindexter/)

## What a commercial crime policy actually does

A commercial crime policy pays the insured back when its own money, securities or property is stolen, whether by an employee, a forger, a burglar, a hacker or an impostor on the phone. It is first party coverage: it protects the organization's balance sheet, not someone else's claim against it.

Any organization with employees who handle cash, deposits, payables, payroll, inventory or wire instructions carries a fidelity exposure. Occupational fraud is committed by trusted people, runs for a median of about a year before discovery, and is rarely recovered from the perpetrator. Commercial property policies exclude dishonest acts by employees. General liability answers injury and damage claims from outsiders, not the disappearance of the insured's own funds. Cyber forms frequently exclude or sublimit the transfer of money. The commercial crime policy is the form built for this gap.

Written on a discovery basis, the policy responds to losses uncovered during the policy period regardless of how long the scheme ran. With the social engineering endorsement it also responds when an employee is deceived into sending funds to a criminal posing as a vendor, executive or client.

The commercial crime policy is not the same instrument as the ERISA fidelity bond required of employee benefit plans (issued at ERISA-Bonds.com) or the FINRA Rule 4360 fidelity bond required of member broker dealers (issued at BrokerDealerBond.com).

## Fidelity bonds and commercial crime policies: same product, different name

Is a commercial crime policy the same thing as a fidelity bond? The answer is a qualified yes. A fidelity bond is an insurance policy that indemnifies the insured for loss caused by the dishonest and fraudulent acts of its covered employees. The Surety & Fidelity Association of America (SFAA), the industry standards body since 1908, notes that a fidelity bond typically also covers forgery or alteration, loss inside the premises from theft, disappearance, destruction, robbery and safe burglary, and loss outside the premises from robbery of a messenger, and that these coverages are sometimes referred to as crime coverage.

Several decades ago the SFAA, together with the major national carriers engaged in fidelity bonding, significantly broadened the basic fidelity bond to include forgery or alteration, loss inside the premises caused by multiple perils, and certain losses outside the premises. The broad form fidelity bond was renamed commercial crime. The SFAA standardized forms are accepted by all U.S. commissioners of insurance as fidelity bonds, so a commercial crime policy satisfies a fidelity bond requirement imposed by a lender, franchisor, grantor, client contract or state statute.

The qualification: the ERISA fidelity bond (benefit plans) and the FINRA fidelity bond (broker dealers) are statutory instruments prescribed by federal law and regulation and written on their own forms. Surety One issues those at ERISA-Bonds.com and BrokerDealerBond.com. Everything else called a fidelity bond, dishonesty bond, employee dishonesty policy or crime coverage is the commercial crime policy.

Surety One, Inc. is a surety and fidelity bond underwriter licensed in all fifty U.S. states, Puerto Rico and the U.S. Virgin Islands, and one of the largest underwriters of bonds in the North American market. Fidelity bonds for TPAs, MGAs, title agencies, labor unions and other hard to place classes are part of the offer.

## Key takeaways

- What it is: first party insurance that reimburses the organization for theft of its own money, securities and property.
- It is a fidelity bond: the SFAA broadened the classic fidelity bond and renamed the broad form commercial crime. Same product, different name.
- Why it matters: property, general liability and most cyber policies do not pay for employee theft or fraudulent transfers.
- What it covers: employee theft, forgery, premises and transit theft, computer fraud, funds transfer fraud, counterfeit money and, by endorsement, social engineering and client property.
- Typical cost: a few hundred to a few thousand dollars per year for limits of $100,000 to $1,000,000 at many small and midsized organizations.
- Structure: discovery or loss sustained form; per occurrence deductible; coverage ends as to any employee once the insured learns of a dishonest act.
- Provider: underwritten by Surety One, Inc.; available in all 52 U.S. states and territories; apply online or by paper.

## Insuring agreements

Employee theft: loss of money, securities and other property caused by the theft or forgery of an employee, acting alone or in collusion with others. The classic fidelity bond and the core of the coverage.

Forgery or alteration: loss from forged or altered checks, drafts, promissory notes and similar instruments drawn on the insured's accounts, including the cost of defending a suit over refusal to pay.

Inside the premises, money and securities: theft, disappearance or destruction of money and securities inside the premises or a bank, and damage to the premises or a locked safe or vault from actual or attempted theft.

Inside the premises, other property: robbery of a custodian, or safe burglary, involving property other than money and securities.

Outside the premises: money, securities and other property lost to theft, disappearance or destruction while in the care of a messenger or an armored motor vehicle company off the premises.

Computer fraud: loss resulting directly from the use of a computer to fraudulently transfer money, securities or property from inside the premises or a bank to a person or place outside.

Funds transfer fraud: loss of funds from the insured's transfer account at a financial institution caused by fraudulent instructions the institution acts upon without the insured's knowledge or consent.

Money orders and counterfeit money: loss from accepting, in good faith and in exchange for goods or services, money orders that are not paid on presentation or counterfeit currency.

Social engineering (fraudulent impersonation), by endorsement: loss when an employee is deceived by a criminal impersonating a vendor, client or executive into voluntarily sending funds. Usually written with a sublimit and a callback verification condition.

Third party (client) coverage, by endorsement: theft of client money or property in the insured's care.

## Commercial crime policy vs. ERISA fidelity bond vs. business services bond

Who it protects. Crime policy: the organization itself. ERISA bond: the employee benefit plan and its participants. Business services bond: the insured's customers, for theft of their property by the insured's employees on the customer's premises.

What it covers. Crime policy: employee theft, forgery, premises and transit theft, computer and funds transfer fraud, counterfeit money; social engineering and client coverage by endorsement. ERISA bond: loss of plan assets caused by fraud or dishonesty by persons who handle plan funds. Business services bond: theft of a client's money or property by an employee of a service contractor (janitorial, home care, pet care, staffing).

Required by law. Crime policy: voluntary, though frequently required by lenders, franchisors, grantors and contracts. ERISA bond: required by ERISA section 412 for anyone who handles plan funds. Business services bond: voluntary, commonly demanded by commercial clients.

Typical amount. Crime policy: commonly $100,000 to $1,000,000 and up. ERISA bond: generally 10% of plan assets, capped at $500,000 ($1,000,000 if employer securities are held). Business services bond: $10,000 to $100,000 per employee or occurrence.

## Who needs commercial crime coverage

Nonprofits and associations; professional firms holding client and trust funds (law, accounting, title, advisory); property managers and HOAs; contractors and distributors; specialty lenders and funders (merchant cash advance, factoring, consumer finance); any business where one person opens the mail, cuts the checks and reconciles the bank statement.

## Typically covered

Theft of money, securities and property by employees; forged or altered checks and instruments; robbery, burglary and disappearance on the premises; theft from a messenger or armored carrier; fraudulent computer transfers and funds transfer instructions; counterfeit currency and dishonored money orders; social engineering losses (endorsement); client property in the insured's care (third party endorsement).

## Commonly excluded

Acts of the insured, its partners, members or majority owners; acts by an employee after the insured learned of a prior dishonest act; indirect or consequential loss including lost income; inventory shortage proven only by inventory computation; trading losses and authorized transactions; data, trade secrets and confidential information; legal fees unless added by endorsement; loss known to the applicant before coverage began.

## Mechanics

Trigger: a discovery form pays loss discovered during the policy period whenever it occurred, subject to any retroactive date. A loss sustained form requires the loss to occur and be discovered within the policy period or its extended discovery period. Discovery is broader and is the Surety One default.

Occurrence: all loss caused by a single employee, or by a series of related acts, is one occurrence subject to one limit and one deductible regardless of duration. Size the limit to the aggregate a trusted employee could divert.

Termination: once the insured, or a partner, officer or manager, learns of a dishonest act by an employee, coverage as to that employee terminates. Prior knowledge is a condition of the application.

Conditions: social engineering endorsements usually require out of band verification of changed payment instructions. Underwriters price to segregation of duties, dual authorization, second person bank reconciliation and outside audit.

## Why the exposure is rising

The biggest driver of crime claims today is fraudulent instruction: business email compromise, spoofed vendor invoices, changed wire instructions and executive impersonation. The FBI Internet Crime Complaint Center reported nearly $3 billion in business email compromise losses in 2023. Standard computer fraud coverage responds when a criminal breaks in and moves money; it does not respond when an employee, deceived, moves it voluntarily. That is the social engineering endorsement's job. The computer fraud, funds transfer fraud and social engineering agreements pay for stolen money; they are not a replacement for cyber coverage (forensics, notification, regulatory defense, data restoration, business interruption, extortion, third party liability), which Surety One offers at CyberRiskPolicy.com. Occupational fraud by insiders continues to run for a median of about twelve months before discovery and is most often uncovered by a tip rather than an audit (ACFE Report to the Nations, 2024: median loss $145,000; organizations lose an estimated 5% of revenue to fraud annually).

## Controls underwriters ask about

Monthly bank reconciliation by someone who does not handle deposits or disbursements; countersignature or dual authorization above a threshold; callback verification on a known number of any change to payment instructions; annual audit or review by an outside CPA; physical inventory counts by someone other than the custodian; background checks on employees who handle money; mandatory vacations and job rotation in finance roles.

## How premium is priced

Typical range: a few hundred to a few thousand dollars per year for limits of $100,000 to $1,000,000 at many small and midsized organizations with sound controls and clean loss history. Materially higher for lenders, funders, cash intensive retailers, large payrolls and organizations with prior losses. Underwriters weigh: number of employees and number handling funds; cash, securities and inventory on hand; volume of wire and ACH transfers; segregation of duties and dual controls; outside audit and reconciliation practice; loss history and prior knowledge; requested limit and deductible; social engineering and third party endorsements; industry and number of locations. Figures are orientation only, not a quote.

## How to apply

Online: a guided six section application at https://commercialcrimepolicy.com/ (applicant, operations, controls, coverage, loss history, review) routed to a senior underwriter on submission. Paper: download the Surety One Commercial Crime Application PDF and return by email (underwriting@suretyone.com), fax (919-834-7039) or mail (P.O. Box 37284, Raleigh, NC 27627, T: 919-859-5294; Puerto Rico office 404 Av. de la Constitución, #708, San Juan, PR 00901, T: 787-333-0222). Signing an application does not bind coverage.

## FAQ

Q: What is commercial crime insurance?
A: First party coverage that reimburses a business, nonprofit or plan for its own loss of money, securities and other property caused by employee theft, forgery or alteration, theft on or off the premises, computer fraud, funds transfer fraud and counterfeit currency. Social engineering and third party coverage are available by endorsement.

Q: Is a commercial crime policy the same as a fidelity bond?
A: Yes, with one qualification. The SFAA broadened the basic fidelity bond and renamed the broad form commercial crime; SFAA forms are accepted by all U.S. insurance commissioners as fidelity bonds. The statutory ERISA and FINRA fidelity bonds are separate forms.

Q: Does general liability or property insurance cover employee theft?
A: No. Property forms exclude employee dishonesty; general liability covers third party injury and damage; cyber often excludes or sublimits funds transfer and social engineering.

Q: Discovery vs. loss sustained?
A: Discovery covers loss discovered during the policy period regardless of when it occurred. Loss sustained requires both occurrence and discovery within the period or extended discovery period. Discovery is broader.

Q: Does the policy cover social engineering and business email compromise?
A: Only with the social engineering (fraudulent impersonation) endorsement, which Surety One offers, usually with a sublimit and callback condition.

Q: How much does it cost?
A: A few hundred to a few thousand dollars per year for $100,000 to $1,000,000 limits at many small and midsized organizations; higher for high velocity or loss affected operations.

Q: What is not covered?
A: Acts of the insured or its owners, acts after knowledge of prior dishonesty, consequential loss, inventory computation shortages, trading losses, data, legal fees unless endorsed, and matters known before inception.

Q: How do I apply?
A: Online at CommercialCrimePolicy.com or by paper application returned by email, fax or mail. A senior Surety One underwriter opens the file the same business day.

## Business services bond (third party fidelity bond)

Page: https://commercialcrimepolicy.com/business-services-bond/

A business services bond is a third party fidelity bond, also called a dishonesty bond, for businesses whose people work inside clients' premises: janitorial and cleaning, home care, pet sitters, handyman services, carpet cleaning, moving companies, security guard companies, pest control, HVAC and electrical contractors, temporary staffing, pool and spa service, locksmiths, home inspectors, real estate brokers, towing, auctioneers, public adjusters, limousine and ride share operators, carpenters and construction trades. It reimburses the client, not the contractor, for theft of the client's money or property by the contractor's employees, and it covers the owner when the owner is performing the duties of an employee. It is what a service business means when it advertises as bonded.

Limits commonly run from $5,000 to $100,000; most clients and contracts ask for $10,000 to $50,000. The bond is written blanket (all clients) or client or contract specific (naming one customer, convenient when a bank, property manager or high net worth household requires dishonesty coverage as a condition of the engagement). Forms are written on a discovery or loss sustained basis, with extended discovery periods generally available. Most small business services bonds carry a conviction clause, which bars payment of a dishonesty claim unless the offending employee is criminally convicted; where allowed an indictment clause substitutes indictment for conviction. A few jurisdictions prohibit conviction requirements. Cost is typically a few hundred dollars per year for common limits. Surety One requires no background checks and declines no applicants; application review and quoting are free with no obligation.

A business services bond protects the contractor's clients. A commercial crime policy protects the contractor's own business. Both are fidelity bonds and many service businesses carry both.

## Glossary

Fidelity bond: An insurance policy, historically written as a bond by surety companies, that indemnifies an employer for loss of money, securities or property caused by the dishonest or fraudulent acts of its employees. The SFAA broadened the form and renamed it commercial crime.

Commercial crime policy: The broad form fidelity bond under its current name: employee theft plus forgery or alteration, inside and outside the premises, computer fraud, funds transfer fraud and counterfeit money, with social engineering and third party coverage by endorsement.

Employee theft: The core insuring agreement: loss resulting directly from theft or forgery committed by an employee, acting alone or in collusion with others.

Discovery form: A crime form that covers loss discovered during the policy period regardless of when the loss occurred, subject to any retroactive date. Broader than a loss sustained form.

Loss sustained form: A crime form that covers only loss that both occurs and is discovered during the policy period or its extended discovery period, with a prior insurance provision that may reach back to a predecessor policy.

Social engineering (fraudulent impersonation) coverage: An endorsement covering loss when an employee is deceived by a criminal impersonating a vendor, client or executive into voluntarily transferring money. Not covered by standard computer fraud or funds transfer fraud agreements.

Funds transfer fraud: Loss of funds from the insured's transfer account caused by fraudulent instructions to a financial institution, acted upon without the insured's knowledge or consent.

Third party fidelity bond: A fidelity bond that pays the insured's clients, rather than the insured, for theft of client money or property by the insured's employees on the client's premises. Written contract specific or blanket.

Business services bond: A small denomination third party fidelity bond, also called a dishonesty bond, for janitorial, home care, pet sitting, handyman and similar service businesses. It is what a business means when it advertises as bonded.

ERISA fidelity bond: The statutory bond required by ERISA section 412 of every person who handles employee benefit plan funds, generally 10% of funds handled, capped at $500,000 or $1,000,000 where employer securities are held. Issued on its own form.

Conviction clause: A provision common in small business services bonds that conditions payment of a dishonesty claim on the criminal conviction of the offending employee; where allowed, an indictment clause substitutes indictment.

Separation of duties: The internal control standard fidelity underwriters require: someone other than the person who reconciles the bank accounts must make deposits, make withdrawals and sign checks. Without it a fidelity risk does not qualify.

## Disclaimer

General information about commercial crime insurance and fidelity bonds; not legal, tax or insurance advice, nor an offer or binder of coverage. Coverage is governed solely by the issued policy. Product availability and terms vary by state.