What Is Standard Coverage on a 3-D Insurance Policy?

by Tom Zuo - Updated September 26, 2017

3-D Insurance was the former name for what is now known as a commercial crime insurance policy. The standard form provides coverage for non-financial institutions and losses from a variety of crimes.

Comprehensive 3-D

Traditionally, the 3 “D's” referred to in the policy were: disappearance, dishonesty and destruction. Today's' policies contain coverage for many more types of loss and, therefore, the 3-D term is a bit of an anachronism.

Commercial Crime

The contemporary commercial crime policy provides coverage for the traditional three “D's” but can also extend to cover computer crimes, credit card crimes and funds transfer fraud, among other types of losses.

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Kidnap and Ransom

Kidnap and Ransom coverage can commonly be included in a crime policy package or be procured as a stand-alone policy and will reimburse the insured for funds expended to secure the release of insured persons.

Limits

Insureds have the ability to select a variety of insurance limits available in the event of a claim. Multiple deductible levels are also available and will affect pricing greatly.

Property Insurance

The loss or destruction of money and securities by employees cannot be covered by a traditional property insurance policy and, consequently, creates the need for organizations to procure crime coverage.

About the Author

Living in Southern California, Tom Zuo is a risk-management professional with decades of experience. He has been writing since 1985, specializing in topics related to insurance and risk management. Zuo holds a Bachelor of Arts in English and mass communication.

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