What is the valuation method for losses under a Commercial Crime policy?

The valuation method for losses under a Commercial Crime policy specifies that money is valued at face value and that securities are valued based on the loss discovery. This method reflects the nature of the coverage that a Commercial Crime policy provides, which focuses primarily on the theft, disappearance, or destruction of money and securities.

Valuing money at face value is consistent with the notion that, regardless of the circumstances surrounding a loss, the monetary value remains constant and is straightforward to determine. When it comes to securities, the method of valuation at the point of loss discovery acknowledges that the value can fluctuate based on market conditions and timing, thus requiring an assessment at the time the loss is identified rather than a fixed past value.

This approach ensures that the insured party receives compensation that accurately reflects the financial impact of the loss, adhering closely to the principles of indemnity that underpin insurance coverage.