THE COMMERCIAL CRIME

INSURANCE
AND
SURETY BONDS
MUHAMMAD UMER BCO19-034
ZEESHAN AHAD ULLAH BCO19-029
THE COMMERCIAL CRIME
INSURANCE
 WHAT IS A COMMERCIAL CRIME IN
COMPANIES
OR
WHITE COLLAR CRIME
While there isn’t one standard commercial crime
definition, it is safe to say that it is typically linked to
financial crimes. Many commercial crimes include things
like embezzlement, fraud, money laundering and forgery.
These crimes may seem less harmless than others, but
they are taken very seriously and can be accompanied by
heavy sentences
THE ISO COMMERCIAL CRIME INSURANCE
PROGRAM

Commercial crime insurance provides protection from

financial losses related to business-related crime,
including theft by employees, forgery, robbery, and
electronic crime.
COMMERCIAL CRIME INSURANCE
CAN PROTECT FOLLOWING:
1. Dishonesty, Theft, or fraud committed by
employee alone or in collusion with others

Employee dishonesty is any fraudulent act

committed by an employee or a group of
employees and one that could potentially result in
financial losses for a company
2. Forgery or Alteration

Fraudulent Alteration means a material alteration

to an instrument for a fraudulent purpose by any
other person other than the person who was
authorised to prepare or sign the instrument.
A forger creates a false document, signature, or
imitation of something valuable (sometimes called a
"false instrument")
3. Third party frauds

Third-party fraud, generally known as identity

theft, is where an individual's identity or personal
details are used without their consent or
knowledge, to gain credit or products. It also
includes manufactured identities, with the
fraudster creating a new identity using stolen
and false information
4. Counterfeiting

Criminal counterfeiting involves the production

of fakes that are then presented in the place of
genuine items. Counterfeit products come in
various forms. Many people have been exposed
to knock-off name-brand shoes, purses, jewelry,
and other desired but expensive items. It is
against the law to produce and sell unlicensed
brand products
5. Incoming cheque forgery

Cheque fraud is a common form of financial

crime. There are three main types:

Counterfeit: when fake cheques are used that are not

written or authorized by legitimate account holders
Forgery: when stolen cheques are signed by someone
other than the account holders
Altered: when cheques are issued by account holders,
and then intercepted and altered to change the
beneficiary or amount.
6. Credit card fraud

Credit card fraud is a form of identity theft that

involves an unauthorized taking of another's
credit card information for the purpose of
charging purchases to the account or removing
funds from it
7. Computer frauds

Computer fraud is the use of computers, the

Internet, Internet devices, and Internet services
to defraud people or organizations of resources.
Illegal computer activities include phishing,
social engineering, viruses, and DDoS attacks
are examples used to disrupt service or gain
access to another's funds
8. Fund transfer frauds

Funds transfer fraud might not be the most

common online crime, but it is one of the most
financially damaging because it usually involves
significant amounts of funds. It is also known as
wire transfer fraud since it involves online funds
transferring
9. Social engineering frauds

Social engineering is the art of manipulating

people so they give up confidential information.
The types of information these criminals are
seeking can vary, but when individuals are
targeted the criminals are usually trying to trick
you into giving them your passwords or bank
information, or access your computer to secretly
install malicious software–that will give them
access to your passwords and bank information
as well as giving them control over your
computer.
Insuring Agreements
1. Dishonesty, Theft, or fraud committed by
employee alone or in collusion with others.
2. Forgery or Alteration
3. Third party frauds
4. Counterfeiting
5. Incoming cheque forgery
6. Credit card fraud
7. Computer frauds
8. Fund transfer frauds
9. Social engineering frauds
SURETY BONDS
 WHAT IS A SURETY BOND

A surety bond is a contract between three parties—

the principal (you), the surety (us) and the obligee
(the entity requiring the bond)—in which the surety
financially guarantees to an obligee that the principal
will act in accordance with the terms established by
the bond
 PARTIES TO A SURETY BOND

The Surety
The surety is the insurance company who provides
the surety bond for the protection of the obligee. The
surety offers a financial guarantee to the obligee that
the principal will fulfill their written obligation and
uphold their duty
 PARTIES TO A SURETY BOND

The Obligee
The obligee is the party requiring the principal to
obtain a surety bond. They are usually government
agencies, local municipalities, individuals, or
companies. The surety bond safeguards the obligee
from the failure of the principal to uphold their part of
the agreement.
 PARTIES TO A SURETY BOND

The Principal
The principal is the party being required to obtain the
surety bond by the obligee. When filling out a surety
bond application, you are the principal. The obligee
requires the principal to obtain a surety bond to
ensure they uphold their end of the agreement
 TYPES OF SURETY BONDS

1. CONTRACT SURETY BOND

Contract surety bonds are used primarily in the
construction industry. These bonds protect the
owner (obligee) from financial loss in the event
that the contractor (principal) fails to fulfil the
terms and conditions of their contract.
 TYPES OF SURETY BONDS

2. Judicial Surety Bond

If you are involved in a lawsuit, you may need a Judicial
Bond. This is a type of surety bond, or more specifically, a court bond.
A surety bond is kind of like insurance; its purpose is to guarantee
you will follow through on your obligations
Before entering into a civil proceeding, the court might require you
to obtain a Judicial Bond to ensure that you can pay the costs related to
the legal action
3. Public Official Bond
A Public Official Bond is a type of surety bond that
serves as a statutory obligation requiring faithful p
erformance, fidelity, and integrity of a public official’s
duties to the public.

The bond requires public officers and secondary obligors

to pay a fixed amount if they do not faithfully perform their duties
in the office. Like all surety bonds, this bond consists of a three-
party agreement
4. License and Permit Bonds
License and permit bonds are a type of type of commercial surety
bonds required of many business industries. Federal, state and local
government agencies require business owners in their respective
industries to purchase license and permit bonds before they can be
issued a license or a permit for certain types of work. The terms
“license bonds” and “permit bonds” are often used interchangeably
to refer to this broad type of surety bond
 THANK
YOU
If any question, You can ask!