Pecuniary insurance is coverage for monetary loss due to a wide range of factors from external and internal influences. Specifically, under this coverage only money lost is payable upon proof of claim.
This coverage is designed as an all-risk policy that pays for monies lost by the insured party through theft or accident. For instance, if during a physical transfer of money from one financial institution to another, money is lost to theft, this coverage would pay the claim based on the limits set forth in the policy.
A policy for this type of coverage is used to protect a business from monetary loss due to fraudulent, dishonest or criminal conduct, as a result of some action on the part of specific employees, such as accountants.
If, for example, a business is flooded by torrential rains, this coverage will pay the losses incurred as a result of an interruption in the company's regular business. The policy limits the amount of lost business time a company can claim on any loss. This time-frame is called the indemnity period.