How is money valued under a Commercial Crime Policy?

Under a Commercial Crime Policy, money is valued at face value. This means that the policy considers the actual denomination of the currency, reflecting what it is worth for transactional purposes without accounting for market fluctuations or additional costs that may factor into its replacement or acquisition.

For instance, if a policyholder experiences a theft of cash, the amount reimbursed would typically align with the actual cash taken, rather than an adjusted value based on market conditions. This approach simplifies the claims process and ensures that insured parties receive the value of the physical cash at the moment of loss, rather than potentially misleading valuations based on other criteria.

In contrast, other valuation methods such as market value or replacement cost might involve complexities related to the current market conditions or the expense of obtaining similar items, which is not applicable to cash.