Definition
Property Other Than Money and Securities (Criminal) is a term utilized in commercial crime insurance policies to describe tangible assets excluding cash and financial instruments. This encompasses items that retain intrinsic worth, such as office furniture, computer equipments, inventory, and supplies.
Meaning and Etymology
The term distinguishes and categorizes assets within commercial crime policies to ensure clarity about what the policy covers. Derived from legal and insurance lexicon:
- Property: On its own, it encompasses anything that someone legally owns.
- Other Than Money and Securities: This phrase excludes monetary cash and financial instruments (such as bonds, stocks), focusing instead on tangible valuables.
Background
In commercial crime insurance, it’s crucial to clearly define what constitutes covered property due to varying risk exposure. Policies segregate between:
- Money and Securities: Cash and easily liquidatable financial instruments.
- Other Property: All tangible assets that a business owns that are not money—these often require different protection measures due to their different use and risk profile.
Key Takeaways
- Tangible Assets: This term specifically addresses non-monetary physical items of value.
- Risk Management: Understanding what is covered under “Property Other Than Money and Securities” aids in better protection and risk assessment.
- Policy Details: Accurate knowledge ensures all valuable business assets are effectively insured without ambiguity.
Differences and Similarities
Differences:
- Money and Securities: This strictly involves cash and financial instruments.
- Other Property: Includes all tangible valuables but excludes cash.
Similarities:
- Both categories require protection under commercial crime policies.
- Both can be subject to theft or fraud but differ in the method and preventive measures required.
Synonyms
- Tangible Business Assets
- Non-Monetary Property
Antonyms
- Intangible Assets
- Liquid Assets
Related Terms
- Commercial Crime Insurance: Policies designed to protect businesses from losses due to criminal acts.
- Risk Management: Strategies to identify, assess, and prioritize risks followed by application of these measures to minimize, monitor, and control the probability or impact of adverse events.
Frequently Asked Questions
What is ‘Property Other Than Money and Securities’ under commercial crime policies?
This term refers to all tangible assets owned by a business, such as office furniture and supplies, but excludes monetary cash and financial instruments.
Why is this distinction important in commercial crime policies?
The distinction helps in addressing specific risk management requirements for different types of assets and ensures that all valuable property is adequately insured, avoiding misunderstandings and coverage gaps.
Can intangible assets be covered under ‘Property Other Than Money and Securities’?
No, intangible assets like patents and trademarks do not fall within this category as they are not tangible, physical items.
Quizzes
Inspirational Quote
“Insurance, in an ever unpredictable world, is not merely a security net but a vessel of trust enabling businesses to flourish without fear.” — Margaret Wells
Humorous Farewell
“Here’s hoping your office supplies remain untouched by criminal masterminds! And if not—it’s always nice to have a loaded commercial crime policy.”
References
- Government Regulations: Examine policies from the National Association of Insurance Commissioners (NAIC) to gain insights on commercial crime policy standards.
- Suggested Readings: “Business Crime and Insurance” by Daniel Marx and “The Definitive Guide to Risk Management” by Paul Hopkin.
