Glossary

Forgery and alteration

A crime coverage that pays when a check, draft or promissory note you issued is forged or altered, plus the cost of defending a suit over it.

Also called: forgery or alteration, check forgery coverage, forgery insuring agreement

Forgery and alteration is an insuring agreement in a commercial crime policy. In the ISO commercial crime coverage form (CR 00 20), it pays for loss resulting directly from the forgery or alteration of checks, drafts, promissory notes and similar written promises to pay money that were made or drawn by you or your agent, or that purport to have been. It also pays reasonable legal expenses if you are sued after refusing to honor such an instrument as forged or altered.

The classic case is a stolen check that a thief re-addresses to a new payee or raises in amount, or a forged signature on a check lifted from your checkbook. Who ultimately bears that loss, you or the bank, often turns on state commercial code rules and on how quickly you reviewed your statements. The coverage is the backstop when the bank is not liable.

The scope is narrow. It reaches instruments drawn on your accounts, not bad checks customers hand you, and it does not cover forged contracts. Fraud that tricks an employee into sending a payment is not forgery; that falls under funds transfer fraud or social engineering fraud coverage, if at all. Underwriters ask about positive pay and dual approval. The guide on commercial crime insurance: what it covers and what it excludes covers the full form, and employee dishonesty covers the staff-theft side.

Last reviewed October 10, 2026

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Related terms

Employee dishonesty Crime coverage for money, securities or other property lost through dishonest acts by your own employees, intended to harm you and benefit them. Funds transfer fraud Crime coverage for money taken from your bank account by a fraudulent instruction to your bank that you did not send or approve. Computer fraud A crime-policy coverage for money, securities or property lost when someone uses a computer to fraudulently move it out of your premises or accounts. Fidelity bond A two-party bond that works like insurance, reimbursing an employer or its clients for theft and other dishonest acts by employees. Social engineering fraud Fraud that tricks an employee into voluntarily sending money or data by impersonating a vendor, executive or client, rather than breaking into systems.

Related guides

Commercial crime insurance: what it covers and what it excludes Crime insurance reimburses a business for employee theft, forgery, burglary and fraudulent transfers. How the insuring agreements, triggers and exclusions work.