Money

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What Money Insurance Is All About

As our society moves towards a digital economy, electronic payment methods are slowly being accepted as a means of payment due to the rapid growth of emerging markets (e-commerce) or lifestyle trends (e-wallet). However, there are still many small businesses that handle cash for their daily transactions, sometimes involving the exchange of large amounts of monies between customers & trading partners. Young fledging companies may also choose to delay the investment of building cashless payment gateways onto their business, hence increasing the risk of theft if there is insufficient preventive measure to ensure the safekeeping of valuables. 

We have always been constantly reminded that “Low crime does not mean no crime”, and what better way to protect your business from theft or robbery by having a money insurance policy to safeguard against possible loss of cash.

Read on more to find out how Money Insurance can keep your cash safe at night…

Money insurance policy provides cover for loss of money in transit between the insured’s premises, bank and other specified places caused by robbery, theft or any other fortuitous cause. It also provides cover for loss of money in the business premises, safe or vault, etc.

Monies that are stored in the business premises, own private residence or even in safe deposit boxes / vaults can be included under policy cover, even money that is under professional custodian care could be insured.

Money insurance policy will respond to the loss of money due to acts of theft or robbery, and business needs to prove there is/are forcible entry to buildings or equipment by non-employees. Theft by employees would typically be under policy exclusions, but can be covered under Fidelity Insurance.

Money insurance policy provides cover for loss of money in transit between the insured’s premises, bank and other specified places caused by robbery, theft or any other fortuitous cause. It also provides cover for loss of money in the business premises, safe or vault, etc.

Monies that are stored in the business premises, own private residence or even in safe deposit boxes / vaults can be included under policy cover, even money that is under professional custodian care could be insured.

Money insurance policy will respond to the loss of money due to acts of theft or robbery, and business needs to prove there is/are forcible entry to buildings or equipment by non-employees. Theft by employees would typically be under policy exclusions, but can be covered under Fidelity Insurance.

Business owners whom handle high volumes of cash on a daily basis should be taking up Money Insurance as their first priority. Losing large amounts of cash not only deplete the cash reserves, but businesses may incur additional working capital expenses if they have to borrow the amount lost to fund the daily operations of the company.

Should your business share similar traits as the below mentioned, we strongly advocate that you take up Money Insurance to safeguard your assets:

  • If you are a Money Lender, Money changer, Fund raiser, Street Vendors, Coffee shop owners, Restaurants, Supermarts & hyperstores, Laundromats & Vending Machine operators, Casinos & recreational centres
  • If your business is in retailing and involves several cash registers points
  • If your business requires you to handle customer’s money / Custodian care
  • Businesses that requires frequent trips to the bank to deposit/ withdraw monies to maintain sufficient cash for daily operations
  • Building / office premises are shared with others. 
  • Inadequate security measures (lack of security guard, no patrolling security, No CCTV cameras) within office buildings premises

Money Insurance policy aims to indemnify any loss of monies (including cheques, bank drafts, money orders, stored value cards, securities, redeemable vouchers and other negotiable instruments) due to attempted theft or robbery by any forcible/ non-forcible means of unauthorised entry into a restricted zone/area.

Areas of coverage would include: 

  • In transit due to robbery, theft, or any unforeseen event
  • From your premises during business hours due to theft or robbery
  • cost of repair or replacement of the safe/ deposit box associated with any theft or attempted theft

Some general exclusion will include:

  • any loss of money in which an employee of the Insured or member of the Insured’s family is directly or indirectly involved
  • unexplained losses and/or shortages due to errors or omissions;
  • any consequential loss including depreciation in value.
  • any damage or loss of money occurring as a result of use of any keys including electronic keys, passwords, biometrics, magnetic cards or any other similar device used for opening any safe or strong room unless the keys are obtained by force, violence, assault or threat.
  • Any consequence whether directly or indirectly proximately or remotely occasioned by contributed to by or traceable to or arising in connection with:-

(i) Riot, Strike or Civil commotion.

(ii) Mutiny or popular rising insurrection rebellion revolution military or usurped power;

(iii) War invasion act of foreign enemy hostilities or warlike operations (whether war be declared or not) civil war;

(iv) Any act of any person acting on behalf of or in connection with any organization with activities directed towards the overthrow by force of a government de jure or de facto or to the influencing of it by terrorism or violence;

(v) Permanent or temporary dispossession resulting from confiscation, commandeering or requisition by any lawfully constituted authority;

(vi) Martial law or state of siege or any events or causes which determine the proclamation or maintenance of martial law or state of siege.

(vii) Any accident or any loss or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising there from or any consequential loss directly or indirectly caused by or contributed to by or arising from ionizing radiation or contamination by radio activity from any nuclear fuel or any nuclear waste from the combustion of nuclear fuel. Solely for the purpose of this exclusion combustion shall include any self sustaining process of nuclear fission.

(viii) Any accident loss destruction or damage directly or indirectly caused by or contributed to by or arising from nuclear weapons material

Areas of coverage would include: 

  • In transit due to robbery, theft, or any unforeseen event
  • From your premises during business hours due to theft or robbery
  • cost of repair or replacement of the safe/ deposit box associated with any theft or attempted theft

Limits of liability required will be greatly dependent on how valuable the cash component to be insured is… to put it simply across, the higher the value of the asset (cash or cash equivalent items), the higher the limit of liability is required to fully cover the asset, should a loss occur.

Some insurers may place a limit cap/ ceiling on the amount of cover, based on the structure of the building, the premise, its surroundings or even the model/type of safety deposit box used to store the cash. In general, the more secure the premise, the higher amount of limit liability is permissible under the policy, subjected to satisfactory underwriting of the said risk.

The cost of insurance varies greatly from each request, as business needs are different. Premiums do increase as limit of liability increases. Generally, if the insured location has adequate security measures put in place, it lowers the possibility of forced entry & attempted burglary or robbery, hence making insurance premiums for money insurance more affordable.

Some underwriting requirements that determines the premium cost is mentioned below:

  • Building/ office structure (fenced up/ walled / open structure) 
  • Availability of security guards, patrol officers. 24hr security or just CCTV cameras in operations
  • Padded locks on access points or electronic access devices available
  • Availability of Safety deposit box/ saferoom for the safekeeping of cash

Save up to 25% on your premiums with our digital insurance platform.

Prefer to speak to a consultant, call us at +65 8100 8228