What You Need To Know About Crime Insurance
Crime Insurance refers to theft of money and/or securities from a business. There are a variety of Crime Insurance categories including:
Employee Dishonesty: Covers theft of money, securities and other property by an employee. These types of losses are commonly carried out through theft of small amounts over time.
Forgery or Alteration: Pays losses incurred through the direct result of forged or altered checks, drafts or Promissory notes.
Money and Securities: Theft or destruction of cash or securities either at your location(s) or in transit.
Computer and Funds Transfer Fraud: Losses due to money transferred, paid or delivered because of fraudulent computer entry. The impacted computer equipment must be owned or operated by the insured.
Money Orders and Counterfeit Currency: Loss incurred from accepting in good faith counterfeit currency or fraudulently issued money orders.
Client Property: Coverage required by a client for money or property in your possession. Financial institutions will often require this coverage for contractors and vendors.
ERISA Compliance: ERISA requires that 401(k) and other types of employee benefit plans be bonded for an amount not less than 10% of the plan’s assets subject to a maximum of $500,000 ($1,000,000 if employer securities are involved). This coverage can be combined with Employee Dishonesty or written inexpensively on a separate ERISA Bond coverage form.
Exposures to crime losses have changed over time. Electronic transactions have reduced the cash exposure for many types of businesses. However, this transition has increased the risk from fraudulent electronic transactions.
Employee Dishonesty or Theft claims continue to be a serious problem for businesses. These losses are well hidden and typically take place in small amounts over a long period of time. The result can be a large loss once the crime is discovered several years into the process.
An effective risk management approach is to combine internal controls with some level of insurance coverages. Good internal financial controls are the best method for preventing and limiting the loss potential from theft. For example, good controls can reduce the opportunity for employee theft and therefore act as a deterrent. Click here to view a prevention guide offered by Chubb. Insurance coverages should also be considered for additional protection. Crime coverages can also be cost effectively obtained as part of a Package or Businessowner’s policy as well as on a stand-alone basis. Please feel free to contact us with any questions regarding this important exposure consideration.
Canadian Auto ID Cards
A U.S. traveler in Canada is required to carry a motor vehicle liability card, plus vehicle ownership papers. A copy of the automobile policy is recommended to be carried. You should also carry a Canadian Non-Resident Inter-provincial Motor Vehicle Liability Card which is strongly recommended.
The Canadian Non-Resident Inter-provincial Motor Vehicle Liability Card is proof of that your US auto policy liability limits meet the minimum requirements for all Canadian provinces and territories and that your coverage extends to Canada and its territories.
U.S. travelers who do not carry a Canadian Non-Resident Inter-provincial Motor Vehicle Liability Card and are stopped by Canadian police or are in an accident while driving in Canada risk being fined or having their vehicle impounded until proof of proper coverage is obtained.
Going Into Lay-Up
It’s been a great summer of boating and now it is time to begin preparing your boat for winter. If your boat is hauled out for winter storage, here are some suggestions that will help you ensure that your vessel will be ready for safe and reliable cruising next year.
Before Haulout
Anchors and Canvas – Remove canvas covers, deck and cockpit cushions, extra mooring lines, fenders and anything else on deck that should go ashore for winter storage. Rinse your anchor rode with fresh water.
Sails and Rigging – Give the sails a careful inspection to identify any repairs or cleaning that may need to be done by your sailmaker during the winter. Take all your running rigging off the boat (don’t forget to reeve messenger lines) so you can clean it by soaking in a mild detergent solution, then rinsing and drying. Inspect it all for frayed ends, chafing, or other damage. Unstep the mast, at least every few years, so you or your rigger can inspect all the rigging and fittings, especially the ones at the masthead.
Check Your Shore Power – If your boat is equipped with AC shore power, inspect the boat’s shore power receptacles and cables. If you see any sign of darkening of the plastic around one of the prongs, parts are in need of replacement.
Check the LPG/CNG Gas System – If your boat is equipped with a propane (LPG) or compressed natural gas (CNG) system, be sure the valves are turned off at the tanks. Take a close look at everything in the tank locker (tanks, regulator, pressure gauge, solenoid valve, wiring, etc.) to be sure all is properly secured and in good repair.
Fuel Tanks – Simple Rule: Try to run your gas tanks close to empty for winter storage, and your diesel tanks should be nearly full.
Winterizing Systems – If you have harsh winter climates where you store your boat, her systems will need to be winterized. Air conditioning and engine cooling systems, as well as sanitation and domestic water systems should be drained. In some cases it’s not possible to drain all the water out of hoses in hidden spaces, so it may be necessary to add some non-toxic anti-freeze.
Protect the Batteries – Storing the batteries at home will extend their life, since cold weather will cause them to self-discharge more rapidly, and once they’ve spent more than a few weeks in a discharged state, they can’t be trusted. So take them home for winter storage, if possible.
Clean Out, Clean Up – Remove as much gear from the boat as you can, including electronics, lifejackets, binoculars, clothing, cushions, fishing gear, and anything else that could be damaged by moisture and cold weather, or that may be attractive to thieves.
Haul Her Properly – If the yard isn’t familiar with your boat, be sure to let the foreman or the lift operator know where it’s safe to set the straps so nothing on the bottom will be damaged. Also, it’s very important that your boat is blocked properly. You should know ahead of time how the yard will block your boat, and you should insist that they use proper methods and equipment.
After Haulout
Inspect the Bottom – Check all through-hull fittings and scrape inside their openings. Be sure all seawater intakes are clear of obstructions.
Through-Hulls and Zincs – Check all the through-hulls above the waterline. If there are any plastic ones, shine a flashlight into them and look closely for cracks. Transducers and Running Gear – Underwater transducers for depth sounders, fish finders, and knot meters should be inspected. Check propellers for damage and straightness. Check shaft bearings for wear. Inspect swim step supports, trim tabs, thruster grates and boarding ladders.
Outdrive Hints – Those flexible rubber bellows between the drive and the transom don’t last forever. Inspect them carefully! Changing the oil in the drive would also be a good idea.
Don’t forget the plug! – If it’s an open boat and the hull has a drain plug, remember to remove it so rain and melting ice and snow will drain out. In the spring, be sure that plug is in place and tightened securely!
Inside the Boat
Inspect All Seacocks – Make a note of any that felt stiff or rough. It may be time to service or replace them.
Change Engine Oil – It’s a good idea to change the oil just before winter storage, regardless of how recently it was changed the last time. The oil filter should be changed too. Remember, all the things you need to do to the drive engines, you also need to do to the genset as well.
Cooling Systems – Pull the impeller out and inspect it. If the impeller shows signs of wear, make a note to replace it. Even if it’s in good shape, you might want to leave it out of the pump for the winter so the blades won’t take a set. If your engine is due for a coolant change, now is the time to do it.
Don’t Forget Her! – Now that all the chores are done and the boat is snug in the yard for her winter nap, don’t forget her! Plan to drop by the yard every month or so to check on her.
For additional details, please click here read the full Going into Lay-Up brochure.
Concerned about your personal insurance coverage? At Cleary, our experienced Personal Lines department will work with you to evaluate your insurance needs, identify exposures, and create a customized insurance portfolio. Give us a call today at 617-723-0700.