Calculator inputs
Formula used
The calculator estimates each coverage portion from the selected limit and a base rate, then adjusts it using exposure and risk factors.
- Coverage portion = (Limit ÷ 1,000) × BaseRate × ExposureFactor × RiskFactors
- ExposureFactor increases with revenue and employee count.
- RiskFactors reflect industry, cash handling, prior losses, safeguards, deductible, and operational complexity.
- Subtotal is the sum of all coverage portions, subject to a minimum premium.
- Total = (Subtotal × TermFactor) + PolicyFee + Taxes/StampingFees.
- Range is shown as ±15% to reflect underwriting variation.
How to use this calculator
- Enter your business profile: industry, employees, revenue, and cash handling.
- Choose coverage limits for the exposures you want to model.
- Set the deductible, term, and any policy fees or taxes if applicable.
- Mark the safeguards you use and any complexity items that apply.
- Press Submit to view the estimate above the form.
- Download a CSV or PDF report for sharing or comparison.
Risk inputs mapped to pricing
The estimate starts with industry, employees, revenue, and cash handling. Revenue increases exposure through a logarithmic scaler, so growth matters but stays controlled. Employee count adds a smaller multiplier because access expands as teams grow. Cash handling raises the factor from none to high. Prior losses add an experience modifier using loss count and total loss amount.
Coverage limits drive the base premium
Each coverage line uses a base rate per one thousand of limit. Employee theft, computer fraud, and funds transfer fraud rate higher because frequency and severity can be meaningful. Money and securities inside and outside are priced with higher base rates for small limits, reflecting handling costs. The tool sums portions, then applies a minimum premium to reflect administration and underwriting.
Controls reduce expected loss
Safeguards are treated as discounts because they lower opportunity and improve detection. Segregation of duties and dual approvals reduce unauthorized payments. Bank verification and multi factor authentication protect vendor changes and access. Reconciliations shorten discovery time. Background checks and training improve deterrence. The discount is capped, so controls never imply zero risk.
Deductible and term adjust the total
A higher deductible reduces expected payout and typically lowers cost. The calculator applies a deductible factor, then adjusts for term length. Multi year terms include a small discount versus straight multiplication. Optional policy fees and a tax or stamping percentage are added to produce a term total and an annualized view for budgeting.
Using results for planning
Use the breakdown to see which coverages contribute most. If transfer fraud dominates, strengthen approvals and verification first. If employee theft is high, review access rights and cash controls. Compare limit and deductible combinations to choose a practical retention level. Export a PDF or CSV for stakeholders, and treat the range as a planning band, not a promise. Document assumptions like revenue period, payroll cycles, and payment volumes, because consistent inputs make year to year comparisons more meaningful and defensible internally overall.
FAQs
What does this calculator estimate?
It produces an educational premium estimate for selected commercial crime coverages using your limits, deductibles, and risk factors. It is not a quote, binder, or a substitute for underwriting.
Why is there a premium range?
Carriers price crime coverage differently and may apply credits or surcharges after review. The range shows reasonable variability around the model output to support budgeting and scenario comparison.
How should I choose coverage limits?
Start with exposures you actually face, such as employee theft, transfer fraud, and computer fraud. Use past incidents, vendor volumes, and maximum probable loss scenarios to select limits you can justify.
How do safeguards affect the result?
Controls reduce the estimate because they lower opportunity and improve detection. Discounts are capped so the tool does not imply controls eliminate loss. Use the output to prioritize which safeguards deliver the biggest impact.
Why does cash handling increase the estimate?
Handling cash and negotiable instruments increases theft opportunity and complicates investigation. Higher cash levels generally raise expected frequency, so the factor increases to reflect operational risk.
Can I use this for multi year planning?
Yes. Keep inputs consistent, then test changes in limits, deductibles, and controls. Export reports for each scenario so you can compare annualized totals and coverage drivers across budget cycles.
Example data table
These sample scenarios show how changes in size and cash handling can shift estimated costs (illustrative).
| Scenario | Industry | Employees | Revenue | Cash | Limits |
|---|---|---|---|---|---|
| Small Consulting | professional | 10 | 800,000 | none | 250k theft, 100k computer |
| Retail Shop | retail | 30 | 2,500,000 | high | 250k theft, 250k funds transfer |
| Medical Clinic | healthcare | 60 | 6,500,000 | low | 500k theft, 250k computer |
| Contractor Group | construction | 120 | 15,000,000 | medium | 1m theft, 500k funds transfer |