According to a recent study conducted by the Association of Certified Fraud Examiners, occupational fraud committed in companies with fewer than 100 employees resulted in the highest loss, as compared to losses from any other crime. This was largely due to the lack of internal controls or because management may placed too much blind trust in its employees. Since crime-related losses, are typically not covered by a basic commercial property insurance policy, you as a business owner should consider crime insurance, which is also known as fidelity insurance.
A crime insurance policy can include various types of protection for your business:
- Theft, Disappearance and Destruction -- Provides on-premises coverage for loss of money and securities caused by theft, disappearance, or destruction. Coverage also applies to any banking premises.
- Fiduciary Liability -- Covers acts or omissions of individuals who have discretionary responsibility involving a designed pension or profit sharing plan or newley created plan.
- Forger -- Covers loss resulting from forgery or alteration of any checks, drafts, promissory notes, or similar promises.
Crime insurance is just another measure to protect your bottom line.
Employee Dishonesty: Indemnifies for loss due to embezzlement or wrongful abstraction of money, securities or other property by employees.