Though business owners realize the importance of insurance when it comes to general or specific liability, in most cases, they fail to protect themselves with coverage against internal crime.
Experts claim there are hundreds of billions of dollars in business losses actually attributed to employee theft.
Initially, the smart business owner should assess the following:
a) How easy is it for employees to steal any items?
b) Are petty cash, banking procedures and invoices managed well?
c) How easy is it for someone to modify shipping/receiving papers?
d) Can workers go and come as they please without monitoring?
Corporate experts advise companies to manage internal theft risk by going the extra mile to ensure they employ trustworthy individuals. They can do this by making reference, background and criminal checks. Businesses should also distribute printed company security rules and institute a manner in which an employee can make a report about another who does not adhere to the protocol. Often, a company policy that includes prosecution of inner crime by the court system is means enough to deter the possibility of theft. For bosses who do not relish the idea or the expense this entails, strict enforcement of monetary compensation for items that were taken may also be effective.
While the above measures certainly can help minimize the risks of internal thefts occurring in the first place, there is no foolproof manner in which to guarantee total avoidance. By purchasing crime coverage (aka fidelity coverage) from a reliable insurance agency, businesses will protect themselves in the event theft loss actually occurs.
What are 4 of the most widespread employee offences?
• False reimbursement submissions
Workers have been known to report extra expenses or expenses that had nothing to do with commercial use. Bosses who keep track of this by asking for receipts and inquiring about cases that appear irregular or not associated with a particular event or assignment tend to target and discourage crime.
• Fraud in Checking
Employee fraud in relation to company checks is not uncommon. In these cases, a worker may make new checks payable to themselves. They may also may take old checks that have never been cashed and re-issue them to themselves. Business owners or managers who review checks prior to affixing a signature to them make it more difficult for cheaters.
• Payroll fraud
Unscrupulous employees have been known to alter cash amounts on payroll checks. They have been also caught at duplicating checks made out to their own names so that they can cash them numerously. Business owners or managers who review checks prior to issuance make it more difficult for scam actualization.
• Fake billing or Invoices
To cover their own bills, some employees may produce false invoices that need to be paid. Business owners or managers who review invoices prior to signing checks for payment make it more difficult for these types of ploys.
PRIME Insurance is an A++ rated agency that has won numerous industry awards and been appointed to do direct business with scores of the leading companies. Passionate about the insurance we sell, we place remarkable focus on customer service, educating our clients so that they can make informed choices.