Unfortunately, research shows that just in the past three years, 21% of surveyed organizations experienced some form of employee fraud. Whether large or small, any business is a potential target for crime. Experts acknowledge employee theft is one of the fastest-growing and most prevalent problems facing businesses today. For a small business, theft can be both professionally and personally devastating as these real Canadian crime insurance claims demonstrate:
Small business employee theft insurance is specifically designed to reimburse organizations for the loss of money, securities, or inventory resulting from criminal activities. Unfortunately, advancements in technology coupled with a constantly changing economic environment, make the threat of crime-related losses to a small business even more devastating.
Whether it happens over a period of weeks, months, years or a spontaneous moment, employee theft can happen when you least expect it. Below some of the potential loss scenarios that a small business crime policy can cover are noted.
Losses sustained by a client resulting from employee theft, fraud or dishonesty by an employee who is not in collusion with the client’s directors or employees.
The unlawful taking or fraudulently induced transfer of money, securities or property through the use by a third party of a computer network and facilities either owned and operated or leased and operated by the insured small business
The insured small business accepts in good faith and in the ordinary course of business either counterfeit currency or a postal or money order supposedly issued by the post office but not paid upon presentation.
The forgery or alteration of any written instruction by a third party, required in connection with any credit card issued to an insured to any employee or partner of an insured that is a partnership.
Money, securities and other property due to employee theft or forgery.
Investigative costs or computer violation expenses incurred in establishing the existence and amount of any direct loss in excess of the deductible.
Losses resulting from instruments that were fraudulently drawn upon the insured small business’s accounts by employee theft.
Fraudulent instructions issued to an financial institution by a third party directing them to transfer or pay or deliver money or securities from the insured’s bank account without the insured’s knowledge and consent.
Destruction, disappearance or abstraction of money and securities outside the insured’s premises by an employee or third party, while being conveyed by the insured or any authorized person.
Destruction, disappearance or abstraction of money and securities within or from the insured small business’s premises by an employee or third parties.
Reviewing internal controls, inventory management/protection protocols as well as a small business employee theft insurance policy are just some of the preventative risk management techniques you can employ.
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