Protect Your Business and Finances
In insurance and business, the terms crime and fraud are often used interchangeably—but they have distinct meanings. Understanding the difference helps you get the right coverage and safeguard your assets.
1. Crime
Crime generally refers to illegal acts committed by others that result in financial loss to your business or personal assets.
Examples include:
- Employee theft or embezzlement
- Burglary or robbery
- Forgery or computer crimes
- Kidnapping or extortion (covered under some commercial policies)
Insurance Coverage:
- Crime insurance policies protect businesses from losses caused by dishonest acts of employees, third parties, or both.
2. Fraud
Fraud is a deliberate act of deception intended to secure an unfair or unlawful gain. Fraud can be committed by employees, customers, or even the insured.
Examples include:
- Submitting false insurance claims
- Falsifying payroll or financial records
- Identity theft
- Misrepresenting information to obtain money or benefits
Insurance Coverage:
- Many policies, including crime and professional liability policies, include protections against certain fraudulent acts.
- However, coverage may be limited if the fraud is committed intentionally by the policyholder.
Key Differences at a Glance
Feature | Crime | Fraud |
Definition | Illegal acts causing financial loss | Deliberate deception for personal gain |
Who Commits It | Often third parties or employees | Employees, customers, or even insured |
Insurance Coverage | Typically covered under crime insurance policies | Coverage varies; intentional acts by the insured may be excluded |
Examples | Theft, burglary, embezzlement | False claims, identity theft, misrepresentation |
Why It Matters
- Choosing the right coverage protects your business from both external threats (crime) and internal deception (fraud).
- Proper coverage safeguards your assets, reputation, and bottom line.
Work With Bridgeway Insurance Group
We help businesses and individuals understand their risks and choose policies that protect against both crime and fraud. With access to top-rated carriers and tailored solutions, you get the coverage you need—before a loss happens.
Bridgeway Insurance Group - Insurance that protects your business, employees, and finances.