1. Camargue Commercial Crime
February 2013
Justin Keevey & John Stebbing

2. “the incidence of white collar crime had increased by 76
“the incidence of white collar crime had increased by 76.5% since 2004”
iol article 9 Sept 2011

3. Overview of cover

4. What is covered? Theft of the company’s property by employees
Includes property belonging to others, which the Insured is responsible for
Includes money and any other property
The theft can be committed alone or in collusion with others

5. What is covered? Theft by employees (continued)
Not necessary to be able to identify guilty employees
No specific restrictions on the method of theft e.g. Computer hacking is covered

6. What is covered? Extortion Fraudulent Transfer Instructions
Can be committed by employees or third parties
The use of threatened violence to commit theft
Fraudulent Transfer Instructions
A fraudulent instruction to a financial institution to transfer funds by employees or third parties

7. What is covered? Computer Fraud
Defrauding the Insured by the accessing of a computer system
Includes the use of viruses
Can be committed by employees or third parties

8. What is covered? Contractual Penalties
Covers the Insured’s contractual liabilities arising out of
Theft by employees
Computer Fraud committed by non-employees

9. What is covered? Contractual Penalties (continued)
Excludes penalties arising out of:
Electronic Data Loss
Computer Virus

10. Summary of Theft Cover Type of Theft Employee Others
Computer Hacking/Virus
Covered
Fraudulent Transfer
Instructions
Extortion
Other/Ordinary Theft
Not covered

11. More about the cover
Policy covers malicious destruction of data, including
Alteration or destruction of data belonging to the Insured or whilst in the insured’s care
The destruction of media
Computer programs
Physical records, if damaged as a result of theft
Use of viruses by employees is excluded

12. More about the cover
Policy not only covers employee theft/fraud but also gives full Commercial Crime cover (including third party Computer fraud)
Provides cover if the thief completes the proposal form dishonestly
Once caught, no cover for subsequent dishonesty of that employee

13. More about the cover
Does not cover consequential loss except for contractual penalties
Costs of recovery of uninsured loss
When indemnity limit is exceeded
Insurers will pay the cost of recovery of loss from thief
Typically 10% of indemnity limit

14. More about the cover Reinstatement of office records
Cover the cost of reinstating office records which were destroyed during the theft
Includes computer files, business books, plans and other documents
Typically 10% of indemnity limit

15. More about the cover Claims preparation costs
Covers the costs incurred to substantiate or quantify a claim
The appointment of an accountant, loss adjuster, auditor, etcetera
Typically 10% of indemnity limit

16. More about the cover Legal fees
Covers the legal costs and expenses reasonably incurred as a result of an Insured Event
Typically 10% of indemnity limit

17. More about the cover Automatic reinstatement of indemnity limit
Limited to double the indemnity limit
Also covers subsidiaries, if stated in the schedule
Only covers partners/directors/principals who participate in an executive role

18. Fidelity Guarantee Comparison

19. Commercial Crime v Fidelity Guarantee
Insured Event
Commercial Crime
Fidelity Guarantee
Employee Dishonesty
Covered
Computer Fraud
(incl. third parties)
Not covered
Electronic Data Loss
Computer Virus
Extortion

20. Commercial Crime v Fidelity Guarantee
Insured Event
Commercial Crime
Fidelity Guarantee
Contractual Penalties
Covered
Fraudulent Transfer
Instructions
Not covered
Unidentifiable Employees
Claims Preparation Costs
Optional

21. Commercial Crime v Fidelity Guarantee
Insured Event
Commercial Crime
Fidelity Guarantee
Costs of Recovery
Covered
Optional
Reinstatement of Office Records
Automatic Reinstatement
Not available

22. Camargue Commercial Crime Risk Management Services

23. Whistle Blowing Hotline

24. Risk Management Hotline
Free Whistleblowing hotline (24 hours)
Risk management hotline

25. “My employees will never steal from me”

26. “My employees will never steal from me” 72% are going to change their mind

27. Disclaimer
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