It’s both. (We apologize if you thought we were going to just pick one.) They are similar, which is why folks tend to interchange them. But they have some key differences when push comes to shove.
The biggest thing that they have in common is that they protect number 1: Your money. When you think of this coverage, just imagine that it’s insurance for your money. If the money is gone, the insurance puts it back. It’s insurance for your money. Fidelity bonds, crime insurance, and employee dishonesty don’t protect you… they replace your money if it’s taken from you.
The differences between them really amounts to “protection for your money when it’s stolen by…blank.”
For employee dishonesty, it’s pretty simple: “protection for your money when it’s stolen by an employee.” We can get in to all of the “who is an employee,” and “by what means did they steal the money,” but that really varies by policy. But the main idea is that it protects your money from an employee theft. Karen writes checks to pay vendors that don’t exist, Timmy pays himself triple his own salary… that kind of stuff. Employees steal money, employee dishonesty replaces money.
Crime insurance usually refers “protection for your money when it’s stolen by someone who’s not your employee.” Like a masked bandit, or a kid that steals your stack of paychecks,… something like that. Those peeps don’t work for you, and they take your money. This insurance replaces the stolen money. The new kinda coverage here (like the last 20 years new, not really new,) is computer or electronic theft… aka… hacking. But remember, it only replaces stolen money. It doesn’t usually kick in for data breaches and that kind of stuff. (You need Cyber Liability for that.) Crime insurance is only for stolen money.
Elaine, our Community Association Program Expert wants you to know that our Employee Dishonesty and Crime Coverages are awesome. Oh, and she’s really quite the crime nerd. In her own words:
I LOVE CRIME [Insurance.] I breathe it. I annoy my husband with stories about it. I have alerts on my news feeds for it. I would pursue a PHD if they offered one in Crime. We make it easy.