A new regulation in New York State will prohibit insurers from excluding companies from commercial crime policies if they employ people who have been convicted of a crime.
The New York Department of Financial Services' new rule, said to be the first of its kind, prohibits insurers from excluding or limiting coverage for loss or damage caused by an employee with a criminal record, as long as the companies considered factors outlined in state law when hiring workers with criminal records.
Commercial crime policies cover losses not covered by other insurance policies for acts such as robbery, theft, extortion and fraud by employees.
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