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.

BREAKING DOWN '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.

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