Employee Theft costs US Businesses $50 Billion each year.
It is an epidemic that is affecting companies and organizations of all sizes. It knows no bounds and respects no relationships between the thief and the victim.
In my professional career, I have seen it affect large corporations, small family owned businesses, government entities and school districts. Its effects go far beyond just the monetary. I have seen it divide communities and organizations.
Many of the perpetrators are people who were placed in a position of trust. Integral parts of the organization. Many are family friends and close with their coworkers.
One such instance occurred in St George, UT in February 2019 as reported in the St George News.
An employee at a Real Estate Office stole around $350,000 from her employer over the course of 3 years. She doctored Bank Statements and used other means to cover her tracks. She was caught during an internal audit.
Imagine the effect that a situation like this can have on the business. Other employees may not have gotten a raise as a result. Some qualified candidates may not have been hired. Other employees may have been let go.
The moral of the business after finding out would have plummeted. The reputation of the business could have been damaged. The business itself could have closed resulting in the loss of jobs for the other employees and the loss of the services for the community.
These events are not isolated. They are occurring with more and more frequency in the workplace.
Insurance is one method of protecting a business from this type of event. Unfortunately, businesses often do not carry the right type of insurance to cover Employee Theft. It is excluded on most Property Policies. Sometimes they have a little bit of a sublimit, but this if most often way too little to address the needs of the business.
Employee Dishonesty Insurance is meant to help plug that coverage gap to help your business recover in the event that this occurs.It is a part of a Commercial Crime Policy meant to cover your business in the event that an employee steals money, securities, or property. It is not commonly thought of. Many businesses do not think to add it until it is too late or they carry too low of limits.
There are also exclusions and limitations if the theft occurs electronically which requires coverage on a Cyber Insurance Policy.
Is your business covered? Click Here to get more information.