Posted on May 17, 2014
Employee dishonesty is a rising concern among today?s business owners. Employee fraud and embezzlement costs companies billions each year. Taking precautions can sometimes be cost prohibitive especially for small companies, who are also more vulnerable to large losses.
Employee dishonesty insurance coverage protects companies from financial losses due to fraudulent employee conduct. This coverage is designed to protect business owners from forgery, credit card and computer fraud as well as counterfeiting. The insurance provides protection for both former and current employees.
Additional coverage is available by endorsement to provide premises coverage meaning that if an employee is on client?s property and steals money or other possessions, the insurance will pay for replacement or loss compensation.
Most standard commercial property policies provide very limited coverage for loss of money, and most exclude it and employee dishonesty from coverage. It is important to purchase crime insurance to cover employee theft to avoid continued loss of revenue and product.
No matter how hard an employee works or how long they have been at the business location, dishonest acts do happen. Theft and fraud by employees is increasing, and business owners must take precautions to protect their companies from financial loss