I signed with a “top tier” OF management agency. They handled my chatting and logins. For three months, the numbers looked great on the screenshots they sent. Then, the payouts stopped. I logged in and realized they had changed the banking info to their own offshore account months ago. They vanished with $45,000 of my money.
Key Takeaways
- “Employee Theft” vs. “Third Party”: Most business insurance covers theft by employees (W-2). Agencies are independent contractors. You need a policy that specifically covers “Vendor Theft” or “Computer Fraud.”
- The Contract is Key: If your contract gave them “authorization” to manage your funds, insurance might deny it as a civil dispute (“Bad Business Deal”) rather than a crime.
- Fidelity Bonds: Large, legitimate agencies should be “Bonded.” This means they carry insurance that pays you if they steal. Always ask for proof of their Fidelity Bond.
- Computer Fraud Coverage: This is the section of a Commercial Crime policy that covers when someone enters your computer system (account) and transfers funds illegally.
The “Why” (The Trap): The “Authorized Representative” Exclusion
Many Crime policies exclude theft committed by “any authorized representative” of the insured.
Since you signed a contract hiring the agency to manage your account, they are an “authorized representative.” Therefore, if they steal from you, the insurer says, “You hired a thief. That’s your fault. We cover strangers breaking in, not partners you invited in.”
You must specifically request an endorsement to cover “Agents” or “Independent Contractors” as employees.
The Investigation: “I Called Them”
I shopped for crime coverage for a creator with a manager.
1. The Hartford (Commercial Crime)
- The Quote: I asked for “Employee Dishonesty” coverage.
- The Detail: I had to specifically ask to include “non-compensated officers” or “contractors” in the definition of “Employee.”
- The Cost: ~$400/year for $50,000 coverage.
2. Hiscox (Professional Liability + Crime)
- The Verdict: They offered a bundle. But they emphasized that if I gave the agency my password voluntarily, it might be excluded under “Voluntary Parting.”
3. Asking the Agency
- The Test: I asked three agencies on Instagram, “Are you bonded?”
- The Result: Two blocked me. One said “We have general liability.” (Which does not cover theft).
- My Analysis: Never hire an agency that isn’t bonded or willing to show proof of insurance.
Comparison Table: Protecting Against Managers
| Protection Layer | Cost | Who Pays? | Effectiveness |
| Agency’s Fidelity Bond | $0 | The Agency | High (If they have it) |
| Your Crime Insurance | $400/yr | You | Medium (Exclusion risks) |
| Contract (Legal) | Lawyer Fees | You | Low (If they vanish) |
| Direct Access | Free | N/A | High (Don’t give full control) |
Step-by-Step Action Plan
- Demand Proof of Insurance: Before signing, ask the agency for their COI (Certificate of Insurance) and look for “Crime/Fidelity” coverage.
- Use “View Only” Access: If the platform allows (like OnlyFans “Staff” accounts), never give them the Master Admin login. Give them limited access accounts that cannot change banking info.
- Audit Monthly: Log in yourself. Verify the bank details match your account. Do not trust their screenshots. Screenshots can be photoshopped.
- File a Police Report: If they steal, you must file a police report to trigger any insurance claim. Insurance will not pay out on “suspicion.”
FAQ
Q: Can I sue them?
A: Yes, but “ghost agencies” are often shell companies in Dubai or Romania. Winning a lawsuit is easy; collecting the money is impossible.
Q: Does PayPal protection cover this?
A: No. This is a commercial dispute.
Q: What is a “Third Party Fidelity” bond?
A: It is a bond you can buy that covers you if a specific contractor steals. It is rare and expensive but available for high-revenue studios.
[IMAGE: A screenshot of an OnlyFans “Settings” page showing the “Banking” section, with a warning to check the IBAN.]