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Commercial Crime Insurance for Sports and Fitness Businesses

Commercial Crime Insurance for Sports and Fitness Businesses

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No business is immune to the threat of criminal acts. Even with countless safety and security measures in place, it is unlikely that owners can monitor their business 100% of the time. Consider Commercial Crime Insurance to protect your business from crimes as common as employee theft to larger threats like forgery. 

What is Commercial Crime Insurance?

Commercial Crime Insurance provides protection for businesses from financial losses resulting from criminal acts. This includes forgery, robbery, burglary, theft, and employee dishonesty. 

Although standard commercial property insurance provides some protection from criminal acts, this coverage is limited and most importantly, it does not cover losses resulting from employee dishonesty. This is where Commercial Crime Insurance comes into play. Although no employer wants to believe their employee would steal from them, it is better to be prepared for these offenses. This is especially true for businesses in the sports and fitness industry since they typically have employees interact with customers on a regular basis. These employees have access to valuable equipment, goods, cash, and information. As a result, the business is even more susceptible to theft. 


Why do sports and fitness businesses need Crime Insurance?

Sports and fitness businesses are vulnerable to criminal acts in a number of ways. For instance, the locker rooms found in many fitness centers are designed for privacy and such a setting increases the likelihood of theft. If your facility stores inventory, supplies, or cash on site, these may be at risk for theft or robbery.

Additionally, your employees will likely handle monetary transactions with the many patrons of your business facility and have access to your business’s safes, lockboxes, or cash registers, increasing the likelihood of theft.

What does Crime Insurance Cover? 

Commercial Crime Insurance generally includes coverage for the following items:

Employee dishonesty. Any loss or damage to money, securities, or other property caused by employee theft or forgery. If a business is aware that an employee has previously stolen from the business, losses caused by that employee may not be covered.


Forgery or alteration. If checks, promissory notes, or other promises to pay money are drawn on your account and forged by someone, Commercial Crime Insurance will cover the losses. This insurance also will provide payment for legal fees to defend against lawsuits if you are sued for refusing to pay for a forged check or promissory note.


Theft of money or securities from inside the premises. This covers the loss of money or securities from theft, disappearance, or destruction when the money or securities are located on your business premises. It also covers damage to the building or premises, as well as damage to any locked safe, vault, or cash register resulting from actual or attempted theft. This coverage is for non-employee thefts.


Robbery or safe burglary of other property inside the premises. Robbery is a more specific form of theft which is the taking of property by force or under the threat of force. Safe burglary is the taking of property from inside of a locked safe. This covers the loss of other property (not including money or securities) from your business premises via robbery or safe burglary by non-employees. It also covers damage to the building, premises, or locked safe that occurs during a robbery or safe burglary.


Loss of money or securities outside the premises. This covers theft, disappearance, or destruction of money and securities and robbery or attempted robbery of property while outside your business premises and in the care of a messenger or armored car company.


Computer fraud. Losses or damage from the fraudulent transfer of your money, securities, or other property to a place outside your business premises or bank resulting from the use of any computer.


Funds transfer fraud. Losses resulting from fraudulent instructions provided to a financial institution that leads them to transfer funds out of your account.


Money orders and counterfeit money. Losses resulting from counterfeit money orders or counterfeit money that your business has accepted.


Additional coverages are also available for an extra premium, such as:

What are the key exclusions to Crime Insurance? 

There are a number of exclusions to Crime Insurance. The exclusions most relevant to sports and fitness businesses include:

Discovery vs. Loss Sustained

Crime coverage can be written on either a loss sustained basis or a discovery basis. 

As the name suggests, crime insurance written under a loss sustained basis covers losses sustained during the policy period. Discovery of the loss must occur during the policy period or within one year after the policy expires. 

Crime insurance written under a discovery basis covers losses that are sustained at any time, but discovery of the loss must happen during the policy period or up to 60 days after the policy expires. This is helpful for losses from crimes such as extortion and embezzlement, which are often discovered much later after the offense occurs. 

Final Word 

Although it is impossible to control whether or not your business becomes a victim of crime, you can control how you protect your business against loss from these criminal acts. Commercial Crime Insurance is especially important for businesses in the sports and fitness industry because of the number of patrons dealt with on a regular basis. In fact, any business that hires employees and deals with monetary transactions would be wise to consider Commercial Crime Insurance. 

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