It’s a difficult fact to come to terms with, but charities and good causes can be at risk from within, as well as from external crime. That’s why Crime Insurance, also known as Fidelity Guarantee Insurance, can be essential in protecting your organisation.

What is Crime Insurance?

Crime Insurance protects an organisation against theft, fraud or forgery by a third party and/or an employee.

Why do we need it? 

It’s sad but true – charities can be an easy target for criminals and fraudsters. They may go as far as targeting and exploiting your employees, or even securing positions within your organisation. The good news is, Crime Insurance gives you the peace of mind of knowing you’re covered should you experience any resulting crime loss.

What is a crime loss?

A crime loss occurs when an organisation suffers loss of money and/or securities by way of an external (3rd party) and/or internal (employee) theft. These losses could include:


  • Stealing cash, merchandise, equipment or materials
  • Charging inactive accounts
  • Paying bonuses to those who shouldn’t receive them
  • Increasing amounts on cheques and invoices after they’ve been paid
  • Paying invoices to companies that don’t exist
  • Padding payroll and cash expenditures
  • Not crediting cash payments


  • Using computers to hack into your system and transfer funds
  • Purchasing goods by way of identity and card fraud
  • Scamming your organisation using counterfeit money
  • Stealing property and money, either online or in person
  • Telecoms and utilities theft

The consequences of such crimes could be significant, leading to large financial losses, reputational damage and even bankruptcy. 

Top tips to reduce the risk

As well as having Crime Insurance in place, there are measures you can take to help reduce the risk to your organisation of both internal and external crime.

Internal crime safeguards:

  • Obtain employee references and DBS checks
  • Have the appropriate bank controls in place
  • If agency workers are used, check the employment agency has adequate insurance cover
  • Conduct regular audits
  • Establish a line of authority at your organisation, and ensure that everyone is acting responsibly
  • Create an ‘audit trail’ for each transaction

External crime safeguards

  • User education and awareness – train employees in cyber security principles
  • Lock shared documents with sensitive financial data to prevent thieves from accessing them
  • Undertake periodical crime risk assessments to uncover vulnerabilities
  • Managing user privileges – establish effective management processes

For an overview of cybersecurity, see our article and also this list of valuable cyber resources.

If you’re interested in getting a quote for Crime Insurance and finding out more about how it might offer your organisation protection, please speak to your broker.