Crime & Employee Dishonesty

Commercial crime coverage protects against financial loss from theft, dishonesty, and fraud — employee theft of money or property, theft of consignor proceeds and buyer payments, forgery and alteration, counterfeit currency, and funds-transfer or computer fraud. It's distinct from property and bailee coverage: those respond to physical damage to goods, while crime coverage responds to theft and fraud involving money and property.

Because employees handle payments, access consigned goods and storage, and manage proceeds — and insider theft is consistently among the most damaging losses small businesses face, precisely because trusted staff know the controls. For an auction house holding consignor funds, employee dishonesty is the crime exposure most likely to produce a serious claim. Employee dishonesty coverage reimburses your business for theft of money, securities, or property by employees.

Yes — and this is a critical point for auctioneers. Between a sale and settlement you may hold significant consignor proceeds, and theft of those funds isn't just your loss, it's money you owe consignors. Crime coverage protects against theft of money you're holding, helping ensure a dishonesty or fraud loss doesn't leave you unable to pay the consignors who trusted you, which would be both a financial and reputational crisis.

Yes — forgery and alteration of checks and documents, and acceptance of counterfeit currency, are standard crime-coverage perils. Auctions taking payment in various forms are exposed to both, and crime coverage responds to these losses. We make sure your policy addresses forgery and counterfeit alongside theft and employee dishonesty.

Funds-transfer fraud and computer fraud are increasingly important as auctions take more electronic and online payments, and they're recognized crime-coverage perils. Schemes that trick a business into wiring funds, or that compromise systems to divert payments, are a growing exposure for auction businesses. We make sure your crime coverage addresses these modern fraud risks, not just traditional in-person theft.

Enough to reflect the peak amount of money and value flowing through your business — the most consignor proceeds and buyer payments you might be holding at once. A high-volume house needs higher limits than an occasional auctioneer. We size crime coverage to your actual cash flow and consignment value so a serious loss could actually make your consignors whole, and we pair it with internal-control recommendations that reduce the risk.

Yes. Segregation of duties, regular reconciliation, dual authorization for large transactions, and sound escrow practices for consignor funds all reduce the likelihood of a crime loss and support your coverage at renewal. We'll talk through the controls that fit an auction business, because good practices protect both your consignors and your insurability.

Call 844-967-5247 or request a free quote and tell us about your sale volume, how you handle payments and consignor proceeds, and your staffing. We'll size commercial crime coverage to your cash flow and place it alongside your other coverages, with control recommendations to reduce the risk. Quotes are free and carry no obligation.