Fidelity Insurance (Crime)

At a glance

The greatest threat comes from insiders: employees and decision-makers were responsible for around 40 % of the losses incurred. The biggest losses are usually suffered by large companies. But smaller businesses are affected just as much – and the consequences for them are often more serious.

Around half of all companies in Switzerland have been affected by cybercrime in one way or another. According to the National Cyber Security Center (NCSC), the number of reported cases has increased fivefold since the start of the COVID-19 pandemic.

These criminal acts are associated with considerable financial, liability and reputational risk. Even with extensive and effective preventative measures in place, white-collar crime cannot be ruled out completely. There are, however, cost-effective ways to limit the associated financial losses.

Fidelity insurance – also known as crime insurance – is a sensible investment for businesses wishing to
protect themselves against these risks and the potential consequences. Under such a policy, the insurer
covers financial losses resulting from criminal acts. Who caused the losses – be it an employee, a third
party or a combination of the two – is only of secondary importance. Instead, crime insurance is based
on the discovery rule, i. e. it insures losses that are discovered during the policy period. The insurance also
covers liability losses that the insured person is liable for in accordance with attribution rules under civil law.

• Embezzlement
• Fraud
• Dishonest business practices
• Forgery of documents
• Contractual penalties due to willful damage/loss
• Costs and expenses (including prosecution or external investigation costs)
• Theft/robbery
• Cyber fraud relating to bank transfers in the insured person’s name:
  • Unauthorized access to data processing systems
  • Social engineering (fake president, payment diversion, fake entity fraud)
  • Man-in-the-middle attacks/man-in-the-cloud attacks

Kessler’s experienced Special Risk Team will be pleased to help you find the best fidelity insurance solution for your needs. The team has extensive, multidisciplinary expertise and relevant practical experience. To help ensure optimum risk management and corporate governance, we will discuss your company- and industryspecific crime risks with you. We recommend negotiating with two or three leading suppliers. We will then work together to determine the desired scope of insurance. Weighing up the costs and benefits of a risk transfer is a decision on the type of risk financing. In our opinion, the requirements of corporate governance (the business judgment rule) are also fulfilled by making a conscious decision to include the “crime” risk in the company’s risk management process.