Principles of Risk Management and Insurance, 13th Edition

Chapter 27 Crime Insurance and Surety Bonds

“Thieves respect property. They merely wish the property to become their property that they may more perfectly respect it.”

G. K. Chesterton

Learning Objectives

After studying this chapter, you should be able to

• Define theft, robbery, burglary, and safe burglary.

• Identify the insuring agreements in the commercial crime coverage form (loss-sustained form).

• Explain the difference between the discovery form and the loss-sustained form.

• Identify the basic insuring agreements in a financial institution bond for a commercial bank.

• Show how surety bonds differ from insurance.

• Identify the major types of surety bonds and give an example of where each can be used.

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