In any climate, and particularly in difficult economic times, policyholders need the security of fidelity and crime insurance. Fidelity and crime coverage can be purchased to protect a wide array of risks, including employee theft, robbery, forgery, disappearance of property, computer fraud and kidnap/ransom/extortion. Many policyholders are not aware of the breadth of their fidelity and crime coverage. Fidelity policies often contain various procedural traps, including short windows for providing notice.
Policyholders suffering a fidelity or crime loss should be mindful of how they conduct an investigation into the loss, and should take steps to recover their investigation costs, whether directly through insurance coverage or via recovery/restitution from the wrongdoer prior to reimbursing the insurer for any loss paid.