Crime insurance
Encyclopedia
Crime insurance is insurance to cover losses due to victimization by criminals. It's also called "fidelity insurance." Many businesses purchase crime insurance that allows them to file claims for employee theft or other offenses with the potential to cause financial ruin.

Insurance companies sell separate crime insurance because regular property insurance
Property insurance
Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance or boiler insurance. Property is insured in two main...

 policies usually don't cover losses caused by dishonest employees.

Crime insurance pays when an organization suffers a loss from things like:
  • embezzlement
  • theft
  • forgery
  • computer fraud
  • counterfeiting
  • breaking into a safe
  • general crime and dishonesty


Some organizations buy crime insurance instead of a surety bond
Surety bond
A surety bond is a promise to pay one party a certain amount if a second party fails to meet some obligation, such as fulfilling the terms of a contract...

.

Anarcho-capitalists favor the use of crime insurance by individuals as well, to cover losses due to murder, rape
Rape
Rape is a type of sexual assault usually involving sexual intercourse, which is initiated by one or more persons against another person without that person's consent. The act may be carried out by physical force, coercion, abuse of authority or with a person who is incapable of valid consent. The...

, and other violent crimes in addition to property crimes; this type of crime insurance is termed aggression insurance
Aggression insurance
Aggression insurance is a concept in anarcho-capitalism under which, rather than having a civil authority provide security of life, liberty, and property, individuals would buy insurance to cover damage caused by others' aggression...

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The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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