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13.4 General Exclusions

In addition to exclusions that apply only to specific Insuring Agreements, Commercial Crime coverage forms contain exclusions that apply to all Insuring Agreements. These general exclusions include losses resulting from:

  • Governmental action, such as the seizure or destruction of property by a governmental authority
  • Nuclear hazard, war, or military action
  • Pollution

Acts of Employees, Managers, Directors, Trustees, or Representatives​

The Employee Theft Insuring Agreement is the only Commercial Crime coverage that applies to theft or dishonest acts committed by the insured’s employees, managers, directors, trustees, or authorized representatives. Without this Insuring Agreement, losses caused by these individuals are excluded, whether they act alone or in collusion with others and whether or not they are performing services for the insured at the time of the act.

Confidential Information​

Commercial Crime coverage excludes losses resulting from the unauthorized disclosure of confidential information. Examples include patents, trade secrets or other proprietary business information, and credit card information belonging to others.

Indirect Loss​

Commercial Crime forms cover compensatory damages that result directly from a covered loss. However, they do not cover indirect or consequential losses arising from the occurrence, including:

  • Loss of income
  • Damages other than covered compensatory damages
  • Costs incurred to prove that a loss occurred or determine the amount of the loss

Commercial Crime forms do not cover legal fees, costs, or expenses incurred by the insured in connection with a legal action. The only exception is for certain expenses specifically covered under the Forgery or Alteration Insuring Agreement.