Money & Securities Coverage
Also known as: Money & Securities Broad Form, Cash Coverage, Robbery and Safe Burglary Coverage
Money and securities coverage is a form of crime insurance that protects a business's cash, checks, money orders, and securities against theft, robbery, burglary, destruction, and mysterious disappearance. It is usually written with two coverage parts: an "inside the premises" limit for money stolen from the store, safe, or register, and an "outside the premises" or in-transit limit for cash being carried to the bank by an employee or messenger. Retailers, restaurants, and any cash-heavy operation rely on it because a standard property policy's coverage for money is often tiny or excluded.
For a small-business buyer, the important distinction is between this coverage and employee dishonesty. Money and securities responds to outsider theft and physical loss of cash; theft by your own staff is a separate insuring agreement — a fidelity bond or employee-dishonesty coverage. It also generally will not pay for losses induced by trickery, such as being fooled into wiring funds, which fall under social engineering fraud. Because base property and business owners policy forms cap money coverage with a small sublimit, businesses that keep meaningful cash on hand or make regular bank runs usually need to schedule higher limits.
The practical guidance is to set the inside and outside limits to your real exposure: estimate the maximum cash in the register and safe at any moment for the inside limit, and the largest single deposit an employee carries for the in-transit limit. Check the requirements — many policies condition full coverage on cash being kept in a locked safe after hours or on a two-person deposit procedure — and confirm whether counterfeit currency, credit-card slips, and money orders are included. Keeping the two limits properly sized prevents a robbery or a lost deposit from producing an uninsured shortfall.
Real-world scenario
Consider Riverside Bakery & Café, a busy cash-heavy shop in Sacramento that rings up roughly $18,000 a week, keeps a $3,500 change fund in the register drawers, and drops the day's receipts into a floor safe before the owner drives about $9,000 in cash and checks to the bank each morning. Because a standard commercial property policy caps theft of money and securities at a token $1,000 sublimit, the owner adds Money & Securities Coverage as part of a broader crime insurance program. The bakery buys an "inside the premises" limit of $25,000, an "outside the premises" (in-transit) limit of $15,000, and carries a $1,000 deductible for a total annual premium of $2,400.
One morning a masked robber follows the owner to the parking lot and takes the deposit bag containing $8,700 in cash and $2,300 in customer checks. Two weeks later a burglar pries open the floor safe overnight and removes another $6,400. Because the robbery happened away from the shop, the $11,000 loss is paid under the $15,000 outside limit; the $6,400 safe burglary falls under the $25,000 inside limit. After the single $1,000 deductible is applied to each occurrence, the insurer reimburses $10,000 for the robbery and $5,400 for the burglary — a combined $15,400 recovery.
The carrier also pays $650 to replace the safe damaged during the overnight break-in under the money-and-securities damage provision, which covers destruction of a locked safe, vault, or cash register during a covered theft. Combined with the $15,400 in stolen-funds recovery, the bakery collected $16,050 against its $2,400 annual premium — more than six times its cost in a single year.
How it affects your premium
Money & Securities premiums are driven less by business size and more by how much cash a business handles and how well it protects it. Underwriters weigh several factors:
- Volume of cash on hand — the more currency in registers, safes, and deposits at any given moment, the higher the exposure and the limit you need.
- Inside vs. outside limits — separate limits for money on the premises and money in transit are rated independently; higher in-transit limits cost more because messengers face robbery risk.
- Security controls — alarms, cameras, a UL-rated safe, and dual-custody deposit procedures earn credits, while a table-drawer cash box drives rates up.
- Deposit frequency and routine — predictable daily bank runs by a single unarmed employee raise the deductible the insurer wants and the price it charges.
- Loss history — prior robbery, burglary, or theft claims signal repeat exposure and increase premium.
- Industry and location — bars, cannabis retailers, convenience stores, and shops in high-crime ZIP codes pay more than a low-cash professional office.
- Sublimits and endorsements — adding coverage for money orders, counterfeit currency, or damage to safes and registers adds premium but closes common gaps.
Common misconceptions
Myth: My commercial property or BOP policy already covers stolen cash.
Reality:
Most property forms cap theft of money and securities at a tiny sublimit — often just $1,000 — which rarely covers a real robbery or burglary. You need dedicated Money & Securities Coverage, usually written as part of crime insurance, to protect meaningful cash amounts.
Myth: Money & Securities Coverage will pay if an employee tricks us into wiring money to a fraudster.
Reality:
No — this coverage responds to physical theft, robbery, burglary, and disappearance of currency and securities, not deception-based losses. Wire-fraud and impersonation schemes are handled by social engineering fraud or funds transfer fraud coverage instead.
Myth: It also covers money my own employees steal from the till.
Reality:
Theft by your own workers is excluded here; that risk belongs to a fidelity bond or employee-dishonesty coverage. Money & Securities responds to loss caused by outside parties and by mysterious disappearance.
Frequently asked questions
What exactly counts as 'money and securities'?
Money means currency, coins, bank notes, and often traveler's checks, money orders, and register receipts; securities means negotiable and non-negotiable instruments such as checks, drafts, stamps, and stock certificates. Physical merchandise and account balances are covered under other policies.
What is the difference between the 'inside' and 'outside' limits?
The inside-the-premises limit covers money and securities while they are at your business — in registers, safes, or a night depository. The outside-the-premises limit covers money in transit with a messenger, such as during the daily bank deposit.
Does it cover mysterious disappearance when cash just goes missing?
Typically yes — most Money & Securities forms include loss by mysterious or unexplained disappearance and by destruction, not only proven robbery or burglary. Always confirm the exact insuring agreement, since some cheaper forms narrow this.
How much coverage should a cash-heavy shop carry?
Set your inside limit to your worst-case cash on hand (peak register plus safe balance) and your outside limit to your largest single deposit. A shop depositing $9,000 a day generally wants at least $15,000 to $25,000 to leave room for busy weekends.
Is Money & Securities Coverage the same as a crime policy?
It is one of several insuring agreements inside a commercial crime insurance policy. A full crime program can also add employee dishonesty, forgery, computer fraud, and funds-transfer fraud alongside the money-and-securities section.
Sources cited
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