Help with Endorsement "Crime Insurance"

[iiinycboi]

So i got an IT Staffing BOP + E&O prospect today. They are requiring "Crime Insurance" for 50,000

in their contract(the one they are bidding for ) it states they need

- Crime Insurance - $ 50,000.00

• The policy shall include coverage for all directors, officers, agents and employees of the Contractor.
• The policy shall include coverage for third party fidelity and name the State of New York as loss payee.
• The policy shall include coverage for extended theft and mysterious disappearance.
• The policy shall not contain a condition requiring an arrest and conviction.
• Policies shall be endorsed to provide coverage for computer crime/fraud.

Is this addition business expense? They are requiring it to say CRIME insurance. Anyone have any experience with IT staffing BOPs? Or a carrier that has this? None of my carriers or even my GA has this market....

The only one i got closest to is USLI non admitted but no crime insurance

 

[djs]

??????
While I guess I understand what they are after, I'm not sure why a carrier would take this on.

Mysterious disappearance? That's just opening the gates for payouts. I assume this is for onsite type support, so anybody could claim almost anything.

Just a recommendation, not sure it would work, but see if they will take a bond, rather than a policy, for this part. I'm pretty sure you could do a $50K bond without to much hassle, but it would leave your insured on the hook for covering reported losses.

Dan

 

[Guest]

The typical BOP has a gratuitous amount of crime coverage that may be increased by endorsement. However, this coverage does not extend to the insured's employees taking property, money or securities belonging to the customer. This requires a special form of crime coverage called "Third Party Fidelity Insurance". Depending upon the carrier's crime policy it should meet all of the criteria mentioned except the mysterious disappearance and perhaps, naming a third party as loss payee. Also, there would be some duplicate crime coverage with the BOP which should not be a problem for the separate crime carrier.

Hopefully, searching the marketplace using the subject "Third Party Fidelity Insurance" will yield some results to get you the account.

Good luck!

 

[iiinycboi]

Yeah I searched all over the place, only thing I found was crime/fidelity insurance as a separate policy but it has some exclusions. I tried asking if we can get a 50k surety bond, and the Prospect said she must have "crime insurance"

I saw the stretch endorsement for usli it includes the things they ask for but not up to 50000 it was only like 2500 and it has some exlusions for who did the crime.

 

[Cranson]

This would have to be written on a separate policy and I would say either Philadelphia, Travelers or Chubb could probably write this. Start with Philadelphia, they have a pretty good Crime product.

 

[Soaringagent]

why do they need mysterious disappearance?

 

[iiinycboi]

i guess the contract for the project requires coverage incase someone steals their software. the prospect is an IT staffer/consulting that bids on projects. this was one of the requirements on the project requirements

 

[Guest]

You have to remember also, each company will vary this a little

 

[FLInsa]

Most BOP carriers will balk at adding 50k of crime coverage.

 

[iiinycboi]

They actually ask me to look for a broker for surety bind to satisfy the risk. But the prospect say the contract has to be satisfy or she won't get the contract