Crime Insurance provides coverage for events not covered by most property or liability insurance policies.
Different Crime Insurance Clauses
There are several ways that businesses could be exposed to crime, both from within the organisation as a result of employee infidelity and from third parties. Crime Insurance provides coverage for events not covered by most property or liability insurance policies:
Nature of the Product to be Stolen
As with most businesses, there is a specific risk from the behaviour of employees and some of the causes are listed below. With Agribusiness there is the added threat that they deal in the most stolen goods worldwide accepting cash. There is a simple way of calculating the desirability of products and food that tends to meet all of the definitions to a high degree.
When looking at the product we must consider three themes and if the answer is yes to all three then it is an at-risk product:
For example, in Poultry business we can see the following:
So we can see that the products are at real risk, employees working hand in hand with outside groups can cause large losses very quickly here. In the agriculture sector, we have seen numerous large losses worldwide, and usually in basic food such as milk, meat, bread and cereals rather than finished products.
Typical Crime Losses for Food & Agriculture
There are multiple different potential crime losses for Food & Agriculture companies.
Conclusion about Crime Insurance in Food & Agriculture
As we can see from the described above cases, “non-tangible damage” (financial) losses, caused by infidelity of employees or third-party criminals, can bring quite a significant gap in the balance sheet of any Food & Agriculture enterprise. On the other hand, such losses are not covered by a standard property damage/business interruption insurance contract. Additional commercial crime insurance policies are recommended. The indemnity limit of 1 million EUR costs starts from 50,000 EUR, as a rule, with the same amount of deductible.
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Group Practice Leader Financial Institutions
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Group Practice Leader
Food & Agriculture
T +48 22 39 33 211