Willis Towers Watson
The importance of broad cover for different types of fraud

Most conventional Commercial Crime cover uses theft as well as specifically defined frauds and other types of loss to the policyholder's property as its starting point. This approach does not necessarily address all the scenarios which commonly occur and can lead to uncertainty and potentially gaps in your cover.

Rather than seeking to identify and define specific categories of covered crimes, CRIMEstar:

- Takes its trigger point from the loss you suffer as a result of any type of dishonest activity and provides the broadest based protection for this most widespread range of economic crimes.

- Includes protection for criminal damage, extortion by detention of your employees and additional limits for your associated costs.

- Makes no distinction between computer-based and paper-based frauds, nor does it draw any distinction between criminal damage caused to physical property as opposed to that caused to information stored on computer systems. It also covers crimes regardless of whether the perpetrators are your 'employees' or 'others'.

These innovations are unique to CRIMEstar and really matter because they can greatly reduce the potential for friction in the claims settlement process.

On the coverage front, that's basically it. Using the same simple and transparent approach to policy wording which we followed in our award winning Directors' & Officers' liability insurance – DARCstar, we have created a six page CRIMEstar policy that is written on an all risks basis.

How is CRIMEstar different from other commercial crime covers
What is covered? Conventional commercial crime insurance CRIMEstar
of fraud.
Usually involves lengthy definition with built in sub-definitions. Broad and simple 'dishonesty' based test.
Losses caused by fraud. Distinction for coverage purposes between internal fraud (employees) and external fraud (third parties). All types of fraud covered.
Crimes involving damage to or theft of property. Distinction is generally drawn between computer-based and paper-based fraud with different coverage outcomes. No such distinction
is drawn.
Entities acquired during the policy period. Threshold restrictions generally imposed as to size of entity acquired. Threshold restrictions generally imposed as to size of entity acquired.
Nature of cover for entities sold during the policy period. Cover ceases from point
of sale.
Cover continues from point of sale for those crimes committed prior to sale and discovered for up to one year post sale.
Proof of Loss costs and procedures. Costs often sub-limited and no scope for claiming post discovery loss. Additional limit available to prove potential claims and ability to claim post discovery loss.

Francis is an Executive Director in Willis Towers Watson' FINEX Global, where he specialises in insurance for Directors & Officers (D&O) of companies. He joined Willis Towers Watson in 2010 and has 25 years of experience as a leading litigation lawyer specialising in professional indemnity, financial institutions and directors and officers liability in the London insurance market.

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