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What Every Business Owner Must Know About Employee Theft Insurance

November 27, 2017


We've all been there. No way! It CAN'T happen to us. To be real, we all know that accidents happen. We can only control how we plan for them. 

You carefully run background checks on all of your potential employees. You double-check their resumes for inconsistencies. You believe that none of the people you've hired will ever steal from you or from any one for that matter. So why should you even consider employee theft insurance? 

What you will learn:

Employee Theft in America Today.

The goal here is not to discredit the hard working men and women who drive the U.S. economy every day. But rather to shed light on a chronic issue crippling every honest American's impact on improving our economy. 

The Association of Certified Fraud Examiners (ACF) conducted a study in April 2017 about theft in the workplace. One of their findings was that 75% of workers admit to having stolen at least once from their employers. That eye-popping statistic was also reported by the U.S. Chamber of Commerce.

If that doesn't alarm you, consider this: The Shulman Center for Compulsive Theft and Spending reports that one-third of all business bankruptcies are caused by employee theft.

More from the 2017 ACF Report:

- 50% of thefts are discovered accidentally or reported by another employee

- Inventory shrinkage due to employee theft is higher than shoplifting

The majority of thefts are worth $100K-500K 

- Annual employee theft in the U.S. by employees is $50B

You likely have general liability to cover losses when someone is injured on your property. You probably also have 
property insurance to cover damages to your property. Since most employee thefts go unnoticed for months, even years, what about protecting your company from significant financial loss? 

How Employee Theft Insurance Protects Your Business.

An employee theft policy covers your business for losses or damages sustained by your companies property, money or securities from theft committed by an employee. 

Insurance companies offer a wide range of products designed to protect small and medium-sized businesses from employee thefts.

It's easy to find coverage online. A proactive adviser however, can customize a plan for according the amount of coverage needed to cover your losses.

Don't Confuse Employee Theft Insurance with Crime Insurance.

What happens if an employee helps an outsider steal from his/her company?

That loss would not be covered by an employee theft policy. Exposure to theft/crimes committed by outside parties requires a crime insurance policy.

Although thinking about the possibility of any crime involving your business is disturbing, you can have peace of mind knowing that at least you have coverage. A violation may disrupt your well-being, but recouping your financial losses to prevent business interruption is invaluable.


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