3 Criteria for Employee Theft Coverage
Even though you would love to believe that your employees are loyal to your company and are there to promote the company’s interests and mission, the statistics show that employee theft is a primary concern to any business. The U.S. Chamber of Commerce has conducted studies showing the as a whole, businesses lose almost $40 billion a year to employee dishonesty. This could come from a variety of activities, but employee fraud is high atop the list of factors.
Following the Great Recession in 2008, areas of employee theft and fraud spiked, causing financial concerns for both business and the insurance companies that are paid to protect the liability concerns. The FGIB professionals advise that there are three areas that can trigger a potential claim.
- The action that took place must have been an intentional act of dishonesty, fraud, or theft. Any accidental or negligent loss experienced by the company is not covered
- The employee in question or under accusation must have intended to gain a financial benefit for himself or other people.
- The financial benefit in questions could not be a salary, feed, bonus, promotion, commission, award, pension, or profit-sharing payout. The financial gain is one that cannot be earned through normal business operations.
Employee dishonesty policies are insurance coverage plans that address these concerns. It can be a valuable asset when the company has to replace stolen funds and repair its reputation.