How to Secure Your Business from the Threat of Employee Theft

How to Secure Your Business from the Threat of Employee Theft

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Keep your business safe from employee theft.  

A good business environment is built upon trust and mutual respect between the employer and their employees. However, employee theft can pose a serious threat to your business.  Here is how you can protect your assets.

Crime Coverage

Protecting your business from employee crime is imperative. Employee theft coverage, as its name suggests, protects businesses against property thefts committed by employees.  It is also called employee dishonesty coverage. Coverage applies to the loss or damage to money, securities or other property that results from theft committed by an employee.  Other property does not include electronic data or computer programs.

Here is an example of a loss pertaining to employee dishonest coverage:  A payroll employee engages in check tampering.  They alter paychecks on behalf of two co-workers, increasing the amounts paid by small amounts each week.  The co-workers split the extra cash with the payroll worker.

Employee Dishonesty Policy and Cyber Liability Policy

Different policies can offer a variety of coverages. While your policies give you valuable coverage against employee theft, some policies may not offer the right insurance for your company’s specific needs.  Almost all businesses depend on computers to carry out their day-to-day operations.  If the business experiences a loss that results in damage to their computers or data their operation could come to a standstill.  Talk to your insurance agent about a Cyber Liability policy.  Study the forms and exclusions in each of these policies carefully with your insurance agent.

Proof of Loss

A case of employee theft places stress on your company. Not only have you sustained a financial blow, but it also comes with a loss of trust in your employees. As you proceed to handle the situation, it’s important that you follow the right procedure when filing a claim with your insurance carrier.  Read the Proof of Loss section in the policy or call your insurance agent prior to filing a claim.

To learn about Employee Dishonesty coverage and Cyber Liability coverage  and learn how to best protect your business, contact your team at Hoffman Brown Company in Sherman Oaks, California.