Crime and Employee Dishonesty
What this clause says
The Company will pay for loss of Money, Securities, or Other Property resulting directly from Theft committed by an Employee, whether identified or not, acting alone or in collusion with others.
What this actually means
A crime policy covers theft of the organization's money and property, most commonly by employees, and typically extends to forgery, funds transfer fraud, and social engineering losses where an employee is deceived into sending money to a fraudulent account. Coverage is written per occurrence with its own limit, separate from the liability program.
What it means for an operator
Senior care carries two crime exposures that ordinary businesses do not. The first is resident personal property and resident trust funds, addressed separately below. The second is the sheer number of staff with unsupervised access to residents' belongings and financial information, across shifts, at sites without a finance presence. On top of that sits the general business exposure to funds transfer fraud, which is a large and growing loss category. Check the social engineering sublimit specifically. It is usually far smaller than the main crime limit and it is where the actual losses now occur.
How this evaluates
The Policy Checker applies these rules in order; the first match wins.
crime limit is at least $500K -> Compliant: A crime limit at this level is reasonable for a multi-site operator. Check the social engineering sublimit separately, as it is usually much smaller. crime limit is at least $1 -> Borderline: A modest crime limit. Confirm it accounts for funds transfer and social engineering exposure, not just employee theft. crime limit is not set -> Gap: No crime coverage recorded. Employee theft and funds transfer fraud are not covered by the liability program.
See this in your policy
Check this term against your own program.
Run the Policy CheckerRelated clauses
Common questions about this clause
- What covers a claim that staff financially exploited a resident?
- Does my policy cover a resident trust fund shortfall?
- What is a sexual abuse and molestation sublimit, and how much is enough?
- What insurance does a new assisted living facility need?
- What insurance does a home care agency need if it also runs assisted living?