Forgery

What Does Forgery Mean?

Forgery is the criminal act of altering or imitating a document, check, or other negotiable instruments, or using a signature without the authority of the person whose signature it claims to be, with the intent to defraud or deceive.

In insurance, forgery is a risk covered by forgery insurance, as well as by employee dishonesty insurance policy.

Insuranceopedia Explains Forgery

Common instances of forgery include writing a check or making a note in someone’s name, payable to a fictitious person; issuing checks or notes with forged endorsements; and unauthorized alterations of the amount on a check or note.

Forgery is a crime that can result in millions of dollars in losses for a company. To protect their business, an owner may purchase forgery or alteration insurance, or employee dishonesty insurance. The insurer agrees to compensate the company or any third party that has suffered losses as a result of the criminal act.