Commercial Forgery Policy

AAA

DEFINITION of 'Commercial Forgery Policy'

A specific type of banking liability insurance coverage. A commercial forgery policy protects the insured from any counterfeit checks that are passed to it. Retailers often take out this type of coverage in order to protect themselves from check kiters.

INVESTOPEDIA EXPLAINS 'Commercial Forgery Policy'

Commercial forgery policies are sold by property and casualty insurers. Retail merchants are some of their biggest clients, but other types of merchants use them as well. This type of coverage can be especially valuable for merchants located in high-crime areas.

RELATED TERMS
  1. Commercial Multiple Peril Policy

    A commercial insurance policy that offers at least two forms ...
  2. No-Load Life Insurance

    A type of life insurance that charges much lower fees and expenses ...
  3. Life Insurance

    A protection against the loss of income that would result if ...
  4. Premium

    1. The total cost of an option. 2. The difference between the ...
  5. Deductible

    1. The amount you have to pay out-of-pocket for expenses before ...
  6. Insurance

    A contract (policy) in which an individual or entity receives ...
Related Articles
  1. Cover Your Company With Liability Insurance
    Home & Auto

    Cover Your Company With Liability Insurance

  2. It's Raining Lawsuits: Do You Need An ...
    Home & Auto

    It's Raining Lawsuits: Do You Need An ...

  3. Filling The Gaps In General Liability ...
    Home & Auto

    Filling The Gaps In General Liability ...

  4. Protect Your Company From Employee Lawsuits
    Home & Auto

    Protect Your Company From Employee Lawsuits

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center