Employee Dishonesty & Crime Insurance Coverage

Most employers are unaware of the statistics, but according to the ACFE, businesses and organizations lose roughly 7% of their revenues to employee dishonesty each year. This kind of damage can lead to serious trouble, including potential bankruptcy. While some cases are one-time thefts, many of these crimes are long-term schemes that take a little here and little there over extended periods until employers find themselves stuck with significant cumulative loss.

With an ever-increasing dependence on technology and online business, new methods are available for employees to disguise this type of behavior. So how can you protect your business? Let’s explore some different types theft and coverage.

Common Examples of Employee Dishonesty & Theft:

  • Taking merchandise and other materials.
  • Keeping two different sets of books.
  • Stealing money from the cash drawer.
  • Increasing the amounts on checks or altering invoices.
  • Charging inactive accounts.
  • Giving bonuses to unspecified employees.
  • Issuing checks for unreturned goods.
  • Paying bills to fictitious companies and cashing the checks.
  • Padding payroll and lying about expenses.
  • Covering up shortages by removing ledger sheets.


Different Types of CoverageEmployee-Dishonesty

Theft Disappearance and Destruction Coverage. This coverage protects your business against loss by way of theft, disappearance or destruction of property on-site. It also covers losses from both attempted or actual robberies, including property from a safe or vault. Outside of your premises, this covers your money, securities or any other property in the care of a messenger and also covers losses inflicted by non-employees.

Depositors Forgery or Alteration Coverage. This specifically protects your business from any losses resulting from forgery or alterations to checks, orders, promissory notes, or drafts that is drawn upon you or your accounts by an employee (or others) acting as your agent.

Computer and Funds Transfer Fraud Coverage. This protects your business against money, securities or other property losses via methods of computer fraud. This applies to money transferred from your premises to an outside entity via computer.

There are many more types of crime coverage that can work for your business. ERM Insurance Brokers in Irvine, California has the expertise to find you the best fit!

Call (949) 222-0444 to learn more.