It is always nice to believe that your employees are 100% honest. Regardless of whether you are a small business, medium-sized business, or a large one, this is not always the case. Employees are human, and sometimes humans lie or steal. Employee theft and dishonesty is an unfortunate reality for some business owners that may be hard to comprehend. Especially if you are a small, family-owned business that treats your employees like family. It is challenging to face the reality that even if they are family, there is a possibility they will steal from you.
Employee Dishonesty insurance is a type of Commercial Crime policy that reimburses the business for losses due to employees committing acts of dishonesty. Even if you think your business is immune from this, it is better to be safe than sorry.
Every single business, regardless of industry, should have an Employee Dishonesty insurance policy if you have employees. As a business owner, you have the responsibility of running your operations and making a profit while doing so. Imagine if an employee, one you trusted with your livelihood, was embezzling money for ten years and you didn't notice until now? Or if some petty cash turns up missing? Maybe a forged check is found. How would you replace the funds that have been lost by an employee committing the worst act against your business? Employee Dishonesty insurance will help you if something this devastating happens to you.
While some insurance carriers will have different bells and whistles within their Employee Dishonesty policy, the standard coverages will include:
Employee Dishonesty insurance is one of the few types of Fidelity Bond insurance available for your business to cover the money. You have probably heard stories, or seen in the movies, about employees stealing small sums of money over some time so that it goes completely unnoticed until it is too late. Often, the business will just absorb the loss, sometimes causing bankruptcy and closing of the company. You have worked too hard and too long to have a successful business to be impacted by a bad employee. Regardless of the number of background checks you do, interviews you conduct, and time you spend with someone, you really never know what they may be capable of.
It is critical that you always read your policy for inclusions and exclusions. A standard employee dishonesty policy will not cover: