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Insurance Clauses - Crime Protection/Employee Dishonesty Coverage

Crime Protection/Employee Dishonesty Coverage

For grant agreements: 
Grantee/Recipient shall provide Employee Dishonesty or Fidelity Bond coverages for dishonest acts of an employee of the Grantee/Recipient. Coverage limits not less than $ _______.

For all other agreements: 
Contractor shall provide Employee Dishonesty or Fidelity Bond coverages for the loss of state-owned property by dishonest acts of an employee of the Contractor with coverage limits of not less than $ _______.

Use with:
Contracts involving security services (like armored car services), janitorial services, or access to valuable items such as negotiable securities (like stocks or bonds) or other personal property (like computers).   

Grant agreements.


For all contracts including grant agreements:
Covers loss to money, securities, and property (other than money) caused directly by contractor´s or grantee’s employees’ dishonest acts. Property subject to loss by crime includes all kinds of real and personal property - with money, securities and jewels especially susceptible to loss. 

For all contracts other than grant agreements: 
Policy must include third party coverage (which would include coverage for the loss of state owned property) for loss by the dishonest acts of an employee of a contractor. 

If the employee dishonesty coverage is not specifically endorsed to include a third-party coverage then, in most cases, it will not be comprehensive enough to provide coverage for a claim for theft by your contractor or their employees that results in a loss for your agency.​

​​​For all types of contracts (including grant agreement) the​ Risk Assessment Tool​ to help determine coverage limits. 

Additional considerations: As a baseline limits should equal or exceed the maximum amount of cash or negotiable securities or vulnerable property at risk at any time. It may be necessary to also; 

  • Require larger limits if a contractor´s dishonest employee(s) would have multiple opportunities to steal before the loss would be discovered. 

  • Require smaller limits if the contractor will have limited access to cash or negotiable securities, and when any contact the contractor has with cash or negotiable securities is supervised by the state at all times.

Contact DAS Risk Management if assistance is needed setting minimum coverage limits. ​