Fidelity & Crime Insurance
In most situations today, businesses routinely entrust their day-to-day activities to their employees. Unfortunately, there are times where those same trusted employees take advantage of their company’s trust. Businesses suffer financial losses from computer fraud, check forgery, and what they call creative accounting practices that were done by their employees. Also, with the way that technology has progressed these days, it is getting easier and easier for employees to commit fraud against their companies. The sad thing is even with all your company’s strong efforts to have internal controls and auditing procedures in place, if an employee is determined enough, they will find a way to steal from your company.
Acquiring an Arizona Fidelity/Crime Insurance Policy will protect your company from loss of inventory, securities, or money resulting from a crime. Some of the most common Fidelity/Crime Insurance claims allege the following:
- Computer fraud
- Forgery or Alteration
- Employee dishonesty
- Wire transfer fraud
Among the numerous other criminal acts that are committed by employees and third parties. Companies need to be aware that employees will think up every possible scenario in which they can take advantage of any weakness concerning a company’s financial safeguards. From about every angle you can imagine, from fictitious accounts payable, fake employees, non-existent suppliers, to just outright stealing of securities, property, and money.
Even with a company doing everything it can to prevent this type of behavior, embezzlement and fraud in the workplace is rising. All companies should be very concerned about employee dishonesty, and if your company deals with securities or cash, your first step should be to acquire an Arizona Fidelity/Crime Insurance Policy to protect your company. Please note that in most property insurance policies, losses related to crime are not usually covered, therefore, having Fidelity/Crime Insurance coverage is the smart move for any company.
Unfortunately, many companies fail to purchase adequate crime coverage. With embezzlement and fidelity by employees on the rise across the country, companies not prepared with severe safeguards can discover that these frauds have the chance to go on for many years and when they are finally discovered, it can have a severe impact on the company’s finances. In the majority of business insurance policies, there is either an exclusion of coverage or only a nominal amount of coverage for loss of and securities and money as well as employee dishonesty exposures.
In discussing this type of crime coverage with clients and potential clients, we stress that companies need a complete checks and balances approach to its company’s employees to protect their finances. Even the best and loyal employee, what you might even consider family, could turn out to be the one who is stealing from your company. Having an Arizona Fidelity/Crime Insurance Policy should be an important of your insurance plan, and not having one can put your company in potential financial harm.
The experienced and professional brokers at PJO Insurance Brokerage can present your company with an insurance plan to protect your company from Employee Dishonesty, Theft of Money & Securities, Forgery or Alteration, Computer Fraud, or Robbery and Burglary. We look forward to working with your company.