No business, large or small, is immune to occupational theft. While some acts are one-time thefts, most large losses are caused by a long-term, ongoing scheme that is hidden for years. Employee Theft related claims are generally not covered by a standard Commercial Property policy.
Some steps to reduce your risk of employee theft include:
- Institute strong internal controls with segregation of duties
- Have dual check signers for amounts above a designated threshold
- Have strict security procedures for all computer operations
- Institute formal management and hiring procedures
As no loss prevention program is foolproof, businesses should also strongly consider purchasing a Crime policy to cover potential claims related to employee dishonesty. A Crime policy protects your business from financial loss due to the fraudulent activities of an employee or group of employees, be it theft of physical property, embezzlement, check tampering or fraudulent billings.
At Jackson, Dieken & Associates, we know that protection of your assets is important. Please contact us to further discuss how Crime coverage can protect your business.