What is the difference between a discovery form and a loss sustained form?

A discovery form responds to loss discovered during the policy period, even if the loss occurred earlier. A loss sustained form responds to loss that occurred during the policy period and is discovered within a stated window afterward. Employee theft is often discovered long after it begins, so the trigger matters. Coverage, exclusions and limits vary by carrier and policy form.

Does crime insurance cover a fraudulent wire transfer?

It can, but which insuring agreement responds depends on how the fraud occurred. A criminal directly instructing the bank is a different situation from an employee being deceived into sending the money. The second usually requires a social engineering or fraudulent instruction grant, which is frequently sublimited, and is sometimes placed on the cyber policy instead.

Doesn't my property policy already cover employee theft?

Generally no. Standard commercial property forms typically exclude dishonest acts committed by the insured's own employees. That specific exposure is what the employee theft insuring agreement on a crime policy exists to address, which is why the two policies are commonly written together.

Do we need crime coverage if we are small and everyone is trusted?

Small organizations often carry more exposure per person, not less, because one bookkeeper commonly initiates, approves and reconciles the same transactions. Underwriters look directly at that separation of duties, and improving it usually helps both the terms offered and the underlying risk itself.

Part of our guides to commercial insurance and nonprofit insurance.

Coverage

Commercial Crime Insurance in Missouri

Protects against financial losses from employee theft, embezzlement, forgery, fraud, and robbery.

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Protects against financial losses from employee theft, embezzlement, forgery, fraud, and robbery.

What It Covers

•Employee theft and embezzlement
•Forgery and alteration of documents
•Robbery (inside and outside)
•Theft of electronic funds
•Wire transfer fraud
•Volunteer dishonesty
•Third-party fraud

Example Scenarios

•An accountant embezzles $30,000 over two years
•A volunteer steals donation funds or equipment
•A vendor submission is forged and payment is fraudulently diverted

Who Needs It

•Organizations that handle cash, donations, or payments
•Organizations with multiple staff or volunteers handling money
•Nonprofits with high-value inventory or assets
•Any organization storing significant funds

What It Pays For

✓Direct losses from employee theft
✓Recovery costs
✓Investigation expenses
✓Restitution for recovered funds

What's Not Covered

✕Losses you can't document with clear records
✕Theft discovered after the policy's reporting window closed
✕Accounting errors, unexplained shortages, and inventory that simply doesn't add up
✕Losses caused by an owner or executive who is also an insured
✕Damage to property from a break-in (that's Commercial Property)
✕Money lost to an outside cyber attack, unless computer fraud is added

Commonly misunderstood: Organizations often assume any missing money is covered. Crime policies require proof of a dishonest act — an unexplained shortfall on its own generally won't qualify.

Why It Matters

Crime happens even in trustworthy organizations. Commercial Crime coverage protects your mission-critical funds from being derailed by dishonesty.

Typical Coverage Limits

$25K–$500K per claim

Typical Cost Range

Varies by organization — ask for a quote

Availability, eligibility, limits, exclusions, conditions and coverage terms vary by insurer, policy form, endorsement, jurisdiction and individual risk. This is general information, not insurance, legal or tax advice.

Underwriting and cost considerations

Commercial crime insurance covers a business's direct financial loss from theft, fraud and dishonesty, including employee theft, forgery, robbery, computer fraud and fraudulent transfer of funds.

What underwriters evaluate

Segregation of duties, especially whether one person initiates, approves and reconciles the same payment
Who holds authority to move money, initiate wires, add vendors or change banking details, and at what limits
Bank reconciliation practice: who performs it, how often, and whether an independent person reviews it
Dual authorization thresholds for wire, ACH and check issuance
Out-of-band callback verification for any change to vendor or payroll banking information
Background screening on employees who handle funds, inventory or accounting systems
External audit, internal audit or an outside bookkeeper, and how frequently the books are actually reviewed
Money, securities and easily resold inventory held on premises or in transit, and the controls over each

What affects the premium

Number of employees, particularly those who handle funds or hold financial system access
Revenue and total assets, plus money and securities routinely on hand or in transit
Strength of internal controls, which on crime can affect whether an account is written at all
Limit and deductible chosen for each insuring agreement, since these are often set separately
Whether the policy is written on a discovery basis or a loss sustained basis
Prior crime, embezzlement or fraud losses at the organization

Common claim types

Employee theft of money, securities, inventory or other property, often accumulating over a long period
Forgery or alteration of checks and other financial instruments drawn on the insured
Fraudulent funds transfer in which a criminal instructs the bank to move money from the insured's account
Computer fraud involving unauthorized use of a system to transfer money, securities or property
Robbery, burglary and theft of money and securities inside the premises or while in transit

Common gaps and misunderstandings

Social engineering and fraudulent instruction losses usually need a specific grant and are commonly sublimited
Loss caused by a vendor or contractor may require the definition of employee to be extended by endorsement
Theft of a client's property by an employee at the client's location typically needs its own insuring agreement
Discovery and loss sustained forms trigger differently, so switching forms can create a gap for older loss
Indirect loss such as lost interest, lost profit or investigation cost is commonly restricted or excluded

Commonly purchased alongside

Cyber Insurance
Fiduciary Liability
Directors & Officers (D&O)
Business Owners Policy (BOP)
Employment Practices Liability

Frequently asked questions

What is the difference between a discovery form and a loss sustained form?: A discovery form responds to loss discovered during the policy period, even if the loss occurred earlier. A loss sustained form responds to loss that occurred during the policy period and is discovered within a stated window afterward. Employee theft is often discovered long after it begins, so the trigger matters. Coverage, exclusions and limits vary by carrier and policy form.
Does crime insurance cover a fraudulent wire transfer?: It can, but which insuring agreement responds depends on how the fraud occurred. A criminal directly instructing the bank is a different situation from an employee being deceived into sending the money. The second usually requires a social engineering or fraudulent instruction grant, which is frequently sublimited, and is sometimes placed on the cyber policy instead.
Doesn't my property policy already cover employee theft?: Generally no. Standard commercial property forms typically exclude dishonest acts committed by the insured's own employees. That specific exposure is what the employee theft insuring agreement on a crime policy exists to address, which is why the two policies are commonly written together.
Do we need crime coverage if we are small and everyone is trusted?: Small organizations often carry more exposure per person, not less, because one bookkeeper commonly initiates, approves and reconciles the same transactions. Underwriters look directly at that separation of duties, and improving it usually helps both the terms offered and the underlying risk itself.

Coverage, exclusions and limits vary by carrier and policy form. Review the applicable policy language, and confirm requirements for your state and operations.

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