Business Insurance

Employee Dishonesty Insurance: Do I Need It?

By January 13, 2017 No Comments

Employee Dishonesty Insurance

Did you know that you can actually insure your business against employee dishonesty? That’s right — there’s an insurance policy for that. It has different names at difference carriers, but is often referred to as “employee dishonesty insurance” or a “fidelity bond.”

Brashears Insurance, which has locations in Santa Barbara, Ventura, Orange County and Hawaii, offers employee dishonesty insurance and many other types of business insurance.

Why do I Need Employee Dishonesty Insurance?

It’s a scary world out there. You think you know who you’re hiring, but sometimes temptation gets the better of even the most loyal employees. Statistics show that employee crimes occur 80% of the time, with one in four workers committing fraud after being with a company for 10 years or more.

A business might find it prudent to have employee dishonesty insurance already in place primarily because of embezzlement. Employees might steal such items as cash, securities, or other property. This means that even if your employees aren’t stealing directly from the register, they may be stealing food, office supplies, or other items that you have spent money on. Employee dishonesty insurance, or fidelity bonds, prevent you from suffering from these losses.

What is Covered With Employee Dishonesty Insurance?

With employee dishonesty insurance, or fidelity bonds, you can expect to recover your stolen money or the value of stolen items. The people covered under such policies should include everyone you can think of, such as current and past employees, partners, volunteers, trustees, temps, and seasonal employees.

Read through your policy to ensure that every person that is related to your business is covered so that no one can get away with theft. You should also understand what is included under this type of liability insurance so you can make sure everything is covered:

  • forgery
  • alteration
  • fraudulent funds transfer
  • computer fraud
  • credit card fraud
  • money order fraud
  • counterfeit fraud

You can also add in options like extending the coverage to a client and their property and financial accounts. You should be aware that exclusions do apply, meaning this liability insurance won’t cover everything. For example, accounting errors are not covered, nor are vandalism or thefts you perform yourself.

Get Your Business Covered Now

Does your business have this type of liability coverage? If not, it may be time to talk to one of our licensed insurance agents. Even when you pay close attention to your employees and trust them implicitly, the possibility for them to fool you is always there. Get started with an employee dishonesty policy today by contacting a Brashears Insurance agent today at (805) 564-7645 or explore our website to get started.

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