INSURANCE

Crime Insurance is insurance to cover losses due to victimization by criminals. Many businesses purchase crime insurance that allows them to file claims for employee theft or other offenses with the potential to cause financial ruin. Anarcho-capitalists favor the use of crime insurance by individuals as well, to cover losses due to murder, rape, and other violent crimes in addition to property crimes; this type of crime insurance is termed aggression insurance.

Aggression Insurance is a concept in anarcho-capitalism under which, rather than having a coercive government provide security of life, liberty, and property, people would buy insurance to cover damages caused by others' aggression. A legal right would exist for the victim to collect damages from the aggressor; upon filing a claim and collecting money from the insurer, the right to restitution would be subrogated to the insurer, who would then have an incentive to catch the offender and force him to repay. An argument for this type of system is that it would make people more secure, because the victim would have a stronger incentive to report crimes, and the insurer would have a stronger incentive than government does to bring the offender to justice. Moreover, insurers would guide citizens in the direction of purchasing effective countermeasures against aggression, by offering lower insurance premiums for reduced risk of claims. The concept is mentioned in The Market for Liberty, For a New Liberty, and many other libertarian texts.

Extended Coverage is a term used in the property insurance business. All insurance policies have exclusions - specific causes of loss (also called "perils") that are not covered by the insurance company. An Extended coverage endorsement (EC) was a common extension of property insurance beyond coverage for fire and lightning. Extended coverage added insurance against loss by the perils of windstorm, hail, explosion, civil commotion, riot and riot attending a strike, aircraft damage, vehicle damage, and smoke damage. The endorsement has been largely supplanted by what is referred to as "basic" causes-of-loss form first introduced by Insurance Services Office in 1986 as part of its simplified language revisions. The basic form includes most of the perils previously provided by fire and extended coverage and it adds vandalism and malicious mischief, sprinkler leakage damage, sinkhole collapse, and volcanic action.

Broader coverage is available in "broad form" and "special form" causes-of-loss forms. Broad form adds three additional perils plus collapse due to certain causes. Special form covers almost all risks of loss except those that are specifically excluded.

A Fidelity Bond is a form of protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.

While called bonds, these obligations to protect an employer from employee-dishonesty losses are really insurance policies. These insurance policies protect from losses of company monies, securities, and other property from employees who have a manifest intent to cause the company loss. There are also many other forms of crime-insurance policies (burglary, fire, general theft, computer theft, disappearance, fraud, forgery, etc.) to protect company assets.