The last thing any business owner wants to consider is employee theft. Sadly, the statistics show that businesses large and small deal with the reality of employee theft in the workplace. But there are many steps you can take to protect your business and assets, starting with Employee Theft Insurance.
What Is Employee Theft?
When setting employee policies for your business, you need to define the parameters of performance. Clearly state what is unacceptable for employees to remove from your company. In a commercial setting, the actual stock may be easy to steal, or you may be more concerned with internal theft in the accounting department. Fraud can occur in many surprising ways, and employees can be very enterprising. There is so much more at stake than mere paper clips and pens, and it is up to you to define where an employee crosses the line in your particular business. Being aware of your vulnerabilities is the best way to protect your assets.
What Is Employee Theft Insurance?
Every business should carry Commercial General Liability Insurance, but that protection is limited. Adding Employee Theft Insurance offers security beyond the basic commercial insurance policy and fills the gaps when covering your company. Your general liability package does not protect you in case of employee theft, a major cause of failed businesses.
To fully understand what is covered and how this policy works, you should schedule a discussion with your insurance agent. Be sure you are clear about the differences between an employee, contract worker, partners, and shareholders. When it comes to employee theft insurance claims, you want to be confident you have all the coverage you need.
Securing Your Information and Avoiding Employee Theft
The statistics show that smaller businesses have higher cases of employee theft. Finding out one of your workers is stealing from you is a bitter pill to swallow. Take steps in your hiring process to alleviate some of the potentials for problems:
- Perform Background Checks
- Contact References
- Review Employee Handbook with New Hires
- Inform Employees of Security Systems
Be very aware of your vulnerabilities. Are you open to embezzlement or theft of intellectual property? Will your customer base be exposed to identity theft? Is there potential for your inventory to be diverted and sold through other venues? Do you have outside services contracted like cleaners and landscapers? All of these situations are potential risks and can be monitored and controlled through actions like these:
- Use Security Cameras
- Notify Employees of Surveillance Systems
- Backup your computer systems off-site
- Secure your entrances and exits and keep track of keys
Many will help lower your insurance costs and are worth discussing with your insurance agent. Technology, along with cyber liability insurance, is your friend. Using tracking software, coded keyless entry, Apps with time stamps, and simple camera systems are a few easy solutions.
Understanding Policy Period Of Coverage
In cases of embezzlement and fraud, timing is everything. Be sure to talk with your agent about the fine print of the employee theft policy you are considering. Ask them to explain your best options for protection from the discovery of theft after the fact. How exactly are you covered if you later find an employee stole assets before your policy start date?
Your Independent Insurance Associates are ready to help you identify the many risks of managing your business. We are happy to discuss your company’s unique needs and the insurance coverage you want to purchase for excellent protection. Dealing with employee theft’s emotional toll is overwhelming; our job is to make sure you are covered for those losses.
Contact us today to review your commercial insurance policies to ensure you have adequate protection for every aspect of your business.