Crime & Fraud Insurance: When the Cookie Jar Fights Back

Every nonprofit or business runs on trust. We trust employees to handle donations, vendors to bill fairly, and volunteers to act in good faith. Most of the time, that trust is well-placed. But sometimes, money disappears, checks get altered, or hackers slip into systems and suddenly, your cookie jar is empty.

That’s when crime and fraud insurance steps in. It’s not about assuming the worst in people; it’s about being realistic. Even the best-run organizations can be blindsided by fraud, theft, or forgery.

What Crime & Fraud Insurance Actually Covers

Here’s where the policy does its heavy lifting and yes, it’s much more than “someone stole cash”:

• Employee Theft: Covers loss of money, securities, or other property stolen by an employee. Example: a staff member quietly diverts small donations into a personal account.

• Forgery or Alteration: Protects against losses from forged checks, drafts, or promissory notes. Example: someone fakes a board member’s signature to authorize payments.

• Theft of Money & Securities (On or Off Premises): Covers cash or securities stolen from your office, safe, or even a bank. Example: petty cash vanishes, or funds disappear while being deposited.

• Robbery or Safe Burglary: If physical property (other than money/securities) is stolen during a robbery or a safe is cracked, you’re covered.

• Computer & Funds Transfer Fraud**:** Protects against losses from fraudulent entries or changes to electronic data or transfers. Example: a hacker reroutes a wire transfer overseas.

• Money Orders & Counterfeit Money: Covers losses from accepting fake money orders or counterfeit bills in good faith.

Bottom line: if the cookie jar is raided whether by insiders, outsiders, or hackers crime insurance helps refill it.

Benefits Beyond the Policy

Insurance is more than just reimbursement. The right insurer brings:

• Tailored Coverage: Policies that fit your specific risks (because a gala isn’t the same as a daycare or a 5K).

• Expert Underwriters: People who know financial lines inside out, no matter where you operate.

• Claims Support That Works: With a global claims team and award-winning systems, the best carriers resolve cases quickly and fairly — so you can get back to your mission.

Why Internal Controls Still Matter

Insurance is the safety net. But internal controls are the guardrails that keep fraud from happening in the first place. Some simple, powerful ones include:

• Segregation of Duties: Never let one person approve, pay, and reconcile expenses.

• Dual Control: Two signatures on checks over a set amount.

• Regular Reviews: Surprise audits and rotating roles discourage bad habits.

• Board Oversight: Finance committees should look at processes, not just numbers.