Employee Dishonesty and Fraud are on the rise…
- Employers lose about 6% of their annual revenue to employee theft, forgery or computer fraud.
- The median claim is around $140,000 (in my personal experience it’s actually more like $200,000-$250,000).
- Most claims occur over long periods of time, usually three or more years.
- Most employers only carry a nominal about of coverage and are not expanding it to cover the new exposures caused by technology.
When I suggest higher limits to my customers, I often get the following replies…
- My employees are like family, they would never steal from me.
- The checks are only signed by me or one other person.
- I watch the bank and credit card transactions closely.
Fast forward into the future and some of these same clients that thought it was not possible, have now found their employees were stealing from them. Some creating fake vendor billings that are then paid by our insureds, some rerouting stock and supplies to themselves and selling it elsewhere and others just plain using credit cards and other electronic means to steal.
Nowadays, you can no longer rely on what your property/package carrier gives you. Employers need to have a proper separate crime coverage or at least have the coverage that is included increased. Call us now and have your current coverage reviewed and improved to meet today’s growing exposures.
*Some data from http://www.propertycasualty360.com/2016/01/13/how-to-insure-against-employee-dishonesty