From the African coast, the shipment will be going by rail through several other countries prior to arriving at its destination. While going through one of the countries en route, that government confiscates the entire shipment. While an ocean marine open cargo policy would not cover this kind of loss, the U.S. firm's difference in conditions coverage would respond. Typically, crime insurance covers losses that occur in the country in which the insured operates and the policy is issued. However, the crime losses may take place in other countries not insured by a crime contract.
Embezzlement is the main crime exposure when operating in foreign countries.
Foreign countries are smaller than many of our states. It is possible that, within a matter of hours, a person can drive into and through four or five European countries. However, the embezzlement coverage may apply only in the country where the insured is located. Hence, there would be no coverage for embezzlement losses that are perpetrated outside of the insured's country. Because the actual embezzlement did not take place in the country where the business's insurance was written, the firm's embezzlement insurer denies the claim.