Mercantile Crime Insurance is designed to protect a business from losses due to employee theft or third party fraud.

Businesses of all types and sizes are at risk of fraud. With an estimated 5% of revenues lost to fraud every year, businesses lose nearly $4 trillion worldwide. Whether you own a small family run shop or lead a multi-national corporation, your business is at risk and Great American Fidelity / Crime Division has you covered. Our team of experts recognizes the special insurance needs of your business and will tailor coverage to give you the most comprehensive and affordable coverage in the marketplace.


Mercantile Crime Claims scenarios

  • A broker purposely co-mingled customer funds with her corporate account and used the customers’ money to pay the corporate obligations of another company that she owned.
  • The purchasing director used the company credit card for unauthorized personal purchases costing the company over $500,000 spanning a two-year period.
  • For a period of five years, the assistant manager at a grocery stores approved invoices for payment to a fictitious vendor he created for over $1.2 million.

Common methods of theft

  • Bogus Loan Scheme: A scheme that involves fraudulent loans created or authorized by a perpetrator for his or her own benefit.
  • Forged or Unauthorized Checks: A scheme in which the perpetrator draws funds from company checks that are forged or issued without authorization.
  • Inventory/Equipment Scheme: A scheme that involves the physical corporate assets that are stolen and sold or used for the benefit of the employee.
  • Payroll Scheme: A scheme that involves the manipulation of the payroll system in order for the perpetrator to receive additional funds.

How to protect your business from Mercantile Crime

As much as we’d like to believe that all people are good, when it comes to your business, you can’t be too careful. And while no control is perfect, there are certain steps you can take to help protect your business from Mercantile Crime:

  • Increased segregation of duties: Ensures that no employee has sole authority to control an entire transaction from beginning to end.
  • Fraud training for employees: Increases your employees’ awareness of fraud schemes and how to identify them.
  • Job rotation and mandatory vacation: Employees may identify something that seems off while covering for another employee.
  • Surprise audits: If employees know the dates of an audit, they may be able to hide any schemes.
  • External audit of financial statements: Auditors may identify a discrepancy or concern with certain areas of the business.
  • Secure physical premises: Ensures only authorized personnel have access to money, property and systems.
  • Background checks: Can help identify issues or concerns with a potential employee’s past.

What we offer

We understand that no two companies are the same. They each have their own risks and vulnerabilities and that’s why we pride ourselves on our ability to tailor coverage to meet the specific needs of each of our clients. With up to $50 million in underwriting capacity available on a primary and excess basis we can provide the coverage you need. From our comprehensive crime policy to our long list of coverage enhancements, we’ve got you covered.


Learn more about our products and services

Contact Our Team

  The Crime Times - Spring 2020

In this issue:

  • Vendor Contractor Fraud
  • 5 Keys to a Successful Financial Fraud Investigation

Past issues:

Mercantile Crime Policy Coverage Highlights

  • Employee Theft
  • Forgery or Alteration
  • Loss Inside/Outside the Premises
  • Computer Hacking
  • Money Order & Counterfeit Paper Cash
  • Loss of Clients’ Property
  • Funds Transfer Fraud
  • Fraudulently Induced Transfer
  • ERISA Coverage Fraud or Dishonesty

Coverage Enhancements Available:

  • Credit, Debit or Charge Card Forgery
  • Broad definition of employee
  • 90-Day Notice of Cancellation
  • Claims Expense

Additional endorsements also available for consideration upon request.
Report to the Nations, ACFE 2018


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