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👀☕️🕵🏻‍♀️When $650K allegedly goes missing, what insurance responds?

The recent Ajax Soccer Club case is a good example of why organizations, especially non-profits should understand the difference between Crime and Directors & Officers insurance.

Police allege more than $650,000 was taken from the club, with two former senior employees now facing charges. The allegations have not been proven in court.

From an insurance perspective:

Crime/Fidelity Insurance may respond to the organization’s direct financial loss from employee theft or fraud.

D&O Insurance may respond if directors or officers face claims alleging breach of duty, inadequate oversight or other wrongful acts. Depending on the wording, it may also provide defence costs for an accused executive until conduct exclusions are triggered.

Cyber Insurance could potentially come into play if compromised systems, credentials or social engineering were involved.

One incident. Multiple potential policies.

Having the right coverage is important but understanding how those policies work together is just as important.

Coverage depends on the facts, policy wording, exclusions and insurer’s determination.

#commercialinsurance #insurancebroker #nonprofitorganization #insuranceclaim #cp24