Camargue Commercial Crime February 2013 Justin Keevey & John Stebbing

“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

Overview of cover

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Fidelity Guarantee Comparison

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

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

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

Camargue Commercial Crime Risk Management Services

Whistle Blowing Hotline

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

“My employees will never steal from me”

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

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