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SpecialtyStandard / Universal

Crime / Employee Dishonesty

What this clause says

Crime Insurance covering employee dishonesty, theft of money and securities, and computer fraud with a limit of not less than $500,000.

What this means in plain English

Coverage for theft by employees and certain types of fraud.

What it means for a CDMO program

Less common but trending up, especially when the manufacturer has access to sponsor materials or controlled substances. Cheap coverage to add. If your sponsor is supplying API or finished product for storage, expect this requirement.

How this evaluates

The Decoder applies these rules in order; the first match wins.

  • crime › limit is at least $500K → Compliant: Crime coverage at $500K+ in place.
  • crime › limit is not set → Gap: No crime coverage — usually inexpensive to add.

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Pre-loaded with this clause selected.

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Related clauses

Questions about specialty

Crime / Employee Dishonesty — common questions

When does a CDMO need crime / employee dishonesty coverage?

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When you handle sponsor-owned inventory of value (raw materials, finished products) at your facility. Crime covers theft by employees, third-party fraud, and computer crime. Most sponsor MSAs require it for CDMOs with significant sponsor inventory on premises.

How much crime coverage is typical?

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Sponsor MSAs typically require $250K-$1M. Higher limits ($2M-$5M) for CDMOs with substantial sponsor-owned controlled substances or high-value biologics on hand.

Does this overlap with cargo or warehouseman's coverage?

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Different perils. Cargo/warehouseman's covers physical damage to sponsor inventory. Crime covers theft and dishonesty. Both can apply to the same loss in different proportions; the COI lists them as separate coverages.