ACORD 167 (Crime Insurance Application)
The ACORD application supplement for commercial crime insurance covering employee dishonesty, forgery, and theft risks.
What It Is
The ACORD 167 is the Crime Insurance application supplement that captures information about the applicant's internal controls, financial handling procedures, employee screening practices, and crime loss history. It covers commercial crime coverages including employee dishonesty, forgery, computer fraud, funds transfer fraud, and social engineering fraud.
The form includes detailed questions about segregation of duties, bank reconciliation procedures, audit frequency, background check practices, and whether the company has experienced any employee theft or fraud. It also captures information about the types of financial transactions the company handles and the maximum amount of funds accessible to any single employee.
Crime insurance underwriting focuses heavily on the quality of internal controls, making the ACORD 167 a critical document in the placement process.
Why It Matters for Brokers
Commercial crime losses — particularly social engineering fraud and funds transfer fraud — have increased dramatically. Brokers who help clients document their internal controls on the ACORD 167 not only secure better crime coverage terms but also help clients identify control weaknesses that should be addressed. The ACORD 167 serves dual purposes: it is an application form and an informal risk assessment tool. Clients who struggle to answer the control questions on the form often have gaps in their financial procedures that need attention.
Real-World Example
An accounting firm applies for crime insurance with a $1M limit. The broker completes the ACORD 167 documenting the firm's background check procedures for all new hires, dual-signature requirements for checks over $5,000, monthly bank reconciliation by someone not authorized to sign checks, annual independent audit, and mandatory employee vacations. The comprehensive documentation of controls results in a preferred-tier quote with a low deductible.
Common Mistakes
- 1Overstating internal controls that are not actually implemented consistently, which can void coverage in a claim.
- 2Not disclosing prior employee theft incidents, even if they were handled internally and no claim was filed.
- 3Failing to update the ACORD 167 when the company's financial procedures or employee count significantly change.
How brokerageaudit.com Handles This
Submission Intake provides guided ACORD 167 completion with industry-specific prompts and validates that described internal controls are consistent with the company's size and transaction volume.