A commercial forgery policy is a coverage form for businesses that are exposed to forged checks, altered instruments, or counterfeit payment submissions.
Coverage focus
Coverage typically targets direct business losses caused by fraudulent documents in ordinary business operations. Most policies require rapid notice, internal control standards, and proof that ordinary due care procedures were followed.
Underwriting and controls
Underwriters review accounts payable controls, bank reconciliation practices, and fraud prevention systems. Stronger internal controls can reduce premiums and improve insurability.