How to Insure Your Business Against Employee Theft or Fraud

When considering your business’s risk and exposures, you may often first think about external threats, such as natural disasters, third-party liabilities and lawsuits. However, you must also look inward when assessing threats and implementing appropriate risk management. Employee dishonesty and crime are a particularly prevalent concerns, as your own staff may have access to critical resources, funds and information. Understanding appropriate insurance is essential.

What Insurance Covers Employee Crime and Dishonesty?

You should first understand that while commercial property insurance may include theft, burglary and vandalism as covered incidents, such policies may often explicitly exclude acts committed by your own employees. As such, you’ll need alternative coverage. Fortunately, commercial crime insurance can address the aforementioned coverage gap and provide financial security and fiscal assistance in the wake of such incidents.

What Can These Policies Cover?

Also known as fidelity insurance, your commercial crime coverage can cast a versatile and stout financial safety net across various criminal and fraudulent acts, such as theft of money or property, embezzlement, fraud, forgery and illicit transfers of funds. Your insurance may address the following needs:

• First-party crime coverage can help you recoup losses should an employee steal from your company or otherwise inflict financial losses through criminal or fraudulent acts.

• Third-party crime coverage can cover other parties’ losses, such as those of a client or customer, should your employees commit crimes affecting them.

Where Can I Get Commercial Crime Coverage?

There may be multiple ways to insure your business against employee theft, fraud and dishonesty. Specifically, coverage may come in the following forms:

• As a standalone commercial crime insurance policy

• As an endorsement or rider on a commercial property or business owners policy

• As a fidelity bond, also known as an honesty bond

We’re Here to Help

Contact Davis Insurance Group in Hickory, North Carolina, today to learn more about commercial crime coverage and explore your options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.