How Crime Coverage Can Protect Your Business From Employee Theft


May 4th, 2018

For many businesses, employees are the biggest asset. However, team members can also pose a significant risk. They know internal information and often handle company credit cards, assets, cash and other valuables and therefore have the ability to steal from or defraud their employers.

No matter how carefully you screen your employees, some of them may be or become unscrupulous. If you are the target of embezzlement, fraud or other crime at the hands of your workers, business liability coverage and other business insurance may not cover your losses.

 

How Crime Coverage Can Protect Your Business From Employee Theft

Employee theft coverage, also sometimes known as employee dishonesty coverage, offers protection from employee theft. It covers damage and loss of security, money and other property as a result of worker theft. Depending on the policy, employee theft coverage can protect a business if an employee:

  • Alters or forges checks
  • Steals money from a till, night deposit bag, business safe, cash register, business account or from any other location
  • Logs into a business account and transfers money out without authorization
  • Misuses the company credit card
  • Embezzles from the company
  • Forges signatures to withdraw money
  • Counterfeits money orders and uses them to make purchases in the business
  • Steals and deposits business checks

In addition to coverage for employee theft, you can also seek Computer Fraud Coverage to cover any fraud your workers may commit via company computers.

 

What to Consider With Your Policy

You will also want to consider the difference between a loss sustained and a discovery policy. A loss sustained policy covers you during the policy period only, so any employee theft that occurs when the policy is not in place is not covered. A discovery policy covers you for any losses discovered while the policy is in place. If you get a policy and discover an employee embezzled two years ago, before you were covered, you are covered by a discovery policy.

 

The Upside of Insurance

Of course, you do all you can to keep employee morale high and to use best practices when hiring and screening. To protect your company further, contact Gunn-Mowery, LLC for insurance to give you peace of mind. As an insurance agency, we help you compare various rates and policies from multiple insurance providers so you can get the best possible overview of the options open to you. We also listen to your needs to find policies tailored to your industry. That’s the Upside of Insurance when you work with Gunn-Mowery, so contact us today to get started.