Employee theft — an employee steals money, materials or equipment.
Forgery or alteration of checks and drafts.
Computer and funds transfer fraud — someone breaks into your systems or bank instructions.
Social engineering (often an add-on) — a fake vendor or GC email tricks you into wiring a payment.
Client property (third-party crime) — your employee steals from a customer.
Why contractors buy it
Contractors move large payments to suppliers and subs, often on emailed instructions, and send crews into customers' homes. General liability does not cover theft by your own employees or money lost to fraud, and a license bond protects the public — it does not repay you.
How a typical contractor loss happens
An office manager receives an email that looks like it's from your lumber supplier, with new bank details for the next payment. The $48,000 wire goes to a fraudster. General liability won't respond, and a basic crime policy may exclude voluntary transfers — that's why social engineering coverage is usually added separately, with its own sub-limit.
Simple controls that help pricing and prevent losses
Verify any change in payment instructions with a phone call to a known number
Require two people to approve large payments
Separate who writes checks from who reconciles the bank account
Run background checks on employees who handle money
Lock up blank checks and use positive pay with your bank
Crime vs. other coverage
Crime insurance — your own money and property stolen by employees or fraudsters.
Tools and equipment (inland marine) — theft of tools by outsiders from a job site or vehicle.
Cyber — data breaches, ransomware and notification costs.
License bond — protects consumers and workers, not your business.
What underwriters ask
Who can sign checks and approve payments
Whether bank changes are verified by phone
Payroll and number of employees
Past losses
Asena Capital Insurance Services compares multiple markets for California contractors and requests additional insured endorsements for you when a contract calls for them. Call (858) 925-9555 or request a quote — only your name, phone and email are required. CA License #6008596.
Frequently asked questions
Does general liability cover employee theft?
No. Theft by your own employees is a crime insurance exposure.
Is a contractor bond the same as crime insurance?
No. The bond protects the public and the state; crime insurance protects your business's own money and property.
Is social engineering fraud covered automatically?
Often not. It is usually added by endorsement with its own sub-limit, and some carriers require call-back verification procedures.
Do I need crime insurance if I'm a one-person business?
The employee-theft part matters less, but funds transfer and social engineering fraud still apply to anyone who pays suppliers electronically.