Is Your Business Covered Against Employee Theft?

Don’t assume that it can never happen to you.

As the owner of a business and an employer, you have to be careful to safeguard what you’ve worked so hard to build, not just from those members of the public that might like to take advantage, but from your own employees as well. While surely most of your workers are honest and would never steal from you, all it takes is one bad apple to potentially bankrupt your company. And it’s often the one you never suspected that proves to be the culprit.

Employee theft is on the rise and it currently costs American businesses an estimated $40 billion a year. This is why it is a good idea to consider purchasing employee dishonesty insurance.

Many companies have no protection at all against this type of harm, and of those that do, a high percentage are woefully underfunded. Many policies will only cover up to $50,000  in damages, while the average claim filed for this type of loss is almost $1 million.  A nonessential employee who steals a small amount of petty cash is unlikely to cause a claim to be filed anyway – it is the trusted higher-level managers who can loot the business that you as an owner need to be particularly worried about.